FANG Quick Ratio Analysis

A quick ratio of 0.42x means the company has $0.42 of liquid assets (cash, marketable securities, and receivables) for every $1 of short-term liabilities, indicating limited near-term ability to cover obligations without selling inventory.

This sits below the sector median of 0.72x and places the company in the 25th percentile, meaning most peers hold stronger liquidity buffers. The trend is largely N/A: year-over-year change is not available, while quarter-over-quarter the ratio fell 12.5% from 0.48x to 0.42x, showing a recent deterioration. The combination of a low absolute level and a sharp quarterly decline points to elevated short-term liquidity risk, though it may also reflect efficient use of assets or timing differences. This metric contradicts the overall NEUTRAL verdict because it suggests a specific vulnerability, but the verdict likely hinges on other factors such as cash flow or revenue prospects. On its own, the quick ratio does not support neutral positioning; it pulls toward caution.

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