COST Quick Ratio Analysis

The quick ratio measures whether a company can cover its short-term obligations with its most liquid assets, excluding inventory; at 0.54x, COST has only $0.54 of cash and near-cash assets for every $1 of liabilities due within a year.

This sits below the sector median of 0.72x, placing COST in the 35th percentile among peers, meaning most competitors hold a larger liquidity cushion. The trend is N/A, as no year-over-year change or quarter-over-quarter change is available; only the current value of 0.54x is reported. A low ratio with no trend data offers a limited risk picture, but the below-median level alone indicates higher reliance on inventory sales or financing to meet near-term obligations. This introduces a liquidity risk that is not offset by any demonstrated improvement or deterioration, leaving the risk assessment anchored to a single snapshot. This metric contradicts the overall NEUTRAL verdict somewhat, because a sub-median quick ratio points to a specific weakness that a neutral outlook does not explicitly acknowledge.

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