Quick Ratio
Updated 29h ago
Sector Performance
36th percentileED
0.56x
Sector Median
0.72x
Sector Avg
3.05x
Deep Analysis
The quick ratio measures a company’s ability to pay short-term obligations using its most liquid assets, such as cash and receivables; a ratio of 0.56x means ED has only $0.56 in liquid assets for every $1.00 of current liabilities.
Compared to its sector peers, ED’s quick ratio of 0.56x sits below the sector median of 0.72x, placing it in the 35th percentile. The metric has been trending upward over the last eight quarters, but the most recent quarter-over-quarter change shows a decline of -3.4% (from 0.58x to 0.56x); a year-over-year comparison is not available. The combination of a below-median level and a recent quarterly drop points to higher liquidity risk, though the longer-term upward trend tempers that concern. This metric contradicts the overall NEUTRAL verdict because the low quick ratio and its recent decline suggest a potential weakness in short-term financial health that is not captured by the neutral rating.
Frequently Asked Questions
What does the Quick Ratio tell investors about ED?
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 ED's closest peers by Quick Ratio?
The closest peers by Quick Ratio include: EXR (0.16x), AWK (0.13x), DRI (0.13x), NIO (0.13x), SRE (0.11x).
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.
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0.56x
Sector Median
0.72x
Sector Avg
3.05x
How ED's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.