GWRENEUTRAL

GWRE Quick Ratio Analysis

0.87x

Updated 169h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover its immediate liabilities using its most liquid assets, such as cash and receivables; a value of 1.0x or higher is generally considered healthy, so GWRE's current 0.87x indicates it has slightly less than one dollar of liquid assets for every dollar of short-term debt.

Sector Performance

61th percentile

GWRE

0.87x

Sector Median

0.71x

Sector Avg

3.04x

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Deep Analysis

The quick ratio measures a company's ability to cover its immediate liabilities using its most liquid assets, such as cash and receivables; a value of 1.0x or higher is generally considered healthy, so GWRE's current 0.87x indicates it has slightly less than one dollar of liquid assets for every dollar of short-term debt.

Compared to sector peers, GWRE's quick ratio of 0.87x sits above the sector median of 0.72x, placing it in the 62nd percentile among peers. Trend data for this metric are not available, with no year-over-year change or quarter-over-quarter change reported. The combination of a level above the sector median but below the 1.0x threshold, alongside no observable trend, suggests a moderate liquidity position that neither signals immediate risk nor a strong opportunity. This metric supports the overall NEUTRAL verdict, as the quick ratio is neither alarmingly low nor impressively high relative to the sector.

Frequently Asked Questions

What does the Quick Ratio tell investors about GWRE?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are GWRE's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: WM (0.69x), CHD (0.76x), IRM (0.63x), HIMS (0.60x), WMB (0.59x).

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

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GWRE

0.87x

Sector Median

0.71x

Sector Avg

3.04x

How GWRE's Quick Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.