Quick Ratio

The quick ratio measures a company’s ability to cover its short-term obligations using its most liquid assets—cash, marketable securities, and receivables—excluding inventory.

GILD’s current quick ratio of 1.31x means it holds $1.31 in liquid assets for every $1 of current liabilities, well above the sector median of 0.72x and placing it in the 81st percentile among peers. The metric is decreasing: while the year-over-year change is not available, the quarter-over-quarter change shows a decline of -14.9% (from 1.54x last quarter to 1.31x). A quick ratio well above the sector median signals strong short-term liquidity, but the downward trend could indicate that liquid assets are shrinking relative to liabilities, introducing incremental risk. The combination of a high absolute level and a decreasing trend suggests the company still has ample liquidity, but investors should monitor whether the decline continues. This metric supports the overall NEUTRAL verdict because the favorable sector standing is counterbalanced by the negative momentum.

Frequently Asked Questions

Closest Sector Peers