Quick Ratio

The Quick Ratio measures a company's ability to pay short-term obligations using its most liquid assets (cash, marketable securities, and receivables, but not inventory).

COST's current Quick Ratio of 0.54x means it has $0.54 in liquid assets for every $1.00 of current liabilities, which is below the sector median of 0.74x and places COST in the 32nd percentile among sector peers—indicating lower liquidity than the majority. Over the last eight quarters, the metric has remained stable, though the quarter-over-quarter change was -3.6% (the most recent reading dropped from 0.56x to 0.54x); year-over-year change is not available. The combination of a low Quick Ratio (suggesting potential liquidity risk) with a stable trend over time (no sharp deterioration) implies a moderate risk rather than an acute threat. This mixed picture—a below-average liquidity level tempered by a steady performance—supports the overall NEUTRAL verdict, as it neither flags a major red flag nor signals a clear advantage.

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