ECLNEUTRAL

ECL Quick Ratio Analysis

1.43x

Updated 489h ago·SEC filings & market data

Key Takeaway

The quick ratio measures whether a company can cover its short-term obligations using its most liquid assets, excluding inventory.

Sector Performance

82th percentile

ECL

1.43x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.62x(Jul 2026)

↑ Improving

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Deep Analysis

The quick ratio measures whether a company can cover its short-term obligations using its most liquid assets, excluding inventory.

At 1.43x, ECL has $1.43 of liquid assets for every $1 of current liabilities, indicating comfortable short-term liquidity. This sits well above the sector median of 0.72x and places the company in the 83rd percentile among peers, meaning most competitors hold less liquidity relative to their obligations. The year-over-year change is N/A, but the quarter-over-quarter change is +130.6%, moving from 0.62x to 1.43x in the latest period; there are no longer-term trend data available. The combination of a high level and a sharp recent improvement suggests reduced near-term solvency risk, though the data history is too short to confirm a durable shift. This metric supports the overall NEUTRAL verdict: liquidity is a clear strength, but alone it does not justify an upgrade without broader earnings and growth context.

Frequently Asked Questions

What does the Quick Ratio tell investors about ECL?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are ECL's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (0.60x), LW (0.60x).

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.