EL Quick Ratio Analysis

The quick ratio of 0.82x means the company has $0.82 in liquid assets (cash, marketable securities, and receivables) for every $1 of current liabilities due within a year, indicating it may struggle to cover short-term obligations without selling inventory.

Among sector peers, the median quick ratio is 0.71x, placing EL at the 57th percentile — slightly above average but still below the 1.0x threshold typically considered healthy. No trend data is available: year-over-year and quarter-over-quarter changes are both listed as N/A, and the metric has no values for the last eight quarters. Without a trend line, the current level alone suggests elevated short-term liquidity risk, as a ratio under 1.0x implies the company cannot fully pay off current liabilities using its most liquid assets. This combination of a below‑1.0x quick ratio and absent trend data reinforces the cautious verdict, since the metric signals potential cash‑flow pressure without any indication of improvement. The 0.82x ratio directly supports a cautious stance, as it points to a liquidity weakness that could heighten financial vulnerability, especially in a downturn.

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