DUK Quick Ratio Analysis

The quick ratio measures whether a company can cover its immediate short-term obligations with its most liquid assets, like cash and marketable securities, without selling inventory.

At 0.26x, DUK has only $0.26 of liquid assets for every $1 of current liabilities, which is far below the sector median of 0.72x and places it in the 10th percentile of peers. The metric is declining, as it fell 13.3% quarter-over-quarter from 0.30x to 0.26x, though no year-over-year figure is available for comparison. This combination of a low level and a downward move signals elevated short-term liquidity pressure, raising the risk of relying on external financing or asset sales if obligations come due quickly. From an investment standpoint, this is a caution flag that needs monitoring alongside cash flow stability. The metric supports the NEUTRAL verdict because the underlying utility business generates steady cash flows that can offset a thin liquid ratio, but it does not justify a bullish stance.

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