Quick Ratio

The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets, such as cash and receivables, with a ratio above 1.0x generally considered healthy.

FTNT's current quick ratio of 0.80x is above the sector median of 0.72x, placing it in the 55th percentile among sector peers. The year-over-year change is not available, but the ratio fell 22.3% quarter-over-quarter from 1.03x to 0.80x, and trend data for the last eight quarters is not provided. Although the level exceeds the sector median, the sharp quarterly decline signals that liquid assets are shrinking relative to short-term liabilities, increasing near-term liquidity risk. This combination of an above-median level but a deteriorating trend suggests caution rather than opportunity, as the buffer has eroded quickly. The metric supports the overall CAUTIOUS verdict because the downward momentum in liquidity offsets the peer-relative strength.

Frequently Asked Questions

Closest Sector Peers