FE Quick Ratio Analysis

The quick ratio measures whether a company can cover its short-term bills with its most liquid assets, excluding inventory; at 0.17x, FE has only $0.17 of cash and near-cash for every $1 of current liabilities.

That is far below the sector median of 0.72x, placing FE in the 5th percentile among its peers, meaning nearly all comparable companies hold more liquid assets. The year-over-year change is not available, but the quarter-over-quarter drop of -10.5% shows the ratio fell from 0.19x to 0.17x in the latest period. The combination of an already low level and a declining trend points to heightened short-term liquidity risk, which could strain operations if cash flow slows. For investors, this raises the chance of financial stress, but the low ratio may also reflect an efficient use of cash in a capital-intensive business. This metric contradicts a NEUTRAL verdict because the extreme liquidity weakness warrants caution, even if the overall stock rating remains balanced for other reasons.

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