DOW Quick Ratio Analysis

The quick ratio measures a company’s ability to cover short-term liabilities using its most liquid assets, excluding inventory; a value of 0.85x means DOW has $0.85 in cash and near-cash assets for every $1 of debt due within a year.

That ratio sits above the sector median of 0.72x, placing DOW at the 58th percentile among peers, so liquidity is slightly better than most comparable firms. The year-over-year change is not available, but quarter-over-quarter the metric slipped from 0.86x to 0.85x, a -1.2% decline. DOW’s liquidity level is adequate versus peers, yet the small downward move suggests a mild tightening in short-term financial flexibility. For an investor, this combination points to no pressing liquidity crisis, but the direction warrants watching if the decline continues. This metric supports the overall NEUTRAL verdict: it confirms DOW is neither financially stretched nor especially strong on liquidity.

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