GWRENEUTRAL

GWRE Quick Ratio Analysis

0.87x

Updated 761h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company’s ability to pay short-term debts using its most liquid assets, like cash and receivables, without relying on inventory sales.

Sector Performance

60th percentile

GWRE

0.87x

Sector Median

0.71x

Sector Avg

2.67x

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Deep Analysis

The quick ratio measures a company’s ability to pay short-term debts using its most liquid assets, like cash and receivables, without relying on inventory sales.

At 0.87x, GWRE holds $0.87 of liquid assets for every $1 of current liabilities, meaning it does not fully cover its near-term obligations. Compared to sector peers, this is above the sector median of 0.72x and places GWRE in the 59th percentile, indicating a slightly stronger liquidity position than most peers. The trend information is N/A: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be inferred from the provided data. With a sub-1.0 level but a peer-relative edge, the metric suggests moderate liquidity risk rather than acute strain, and the absence of trend data removes any signal of improving or deteriorating conditions. This metric supports the overall NEUTRAL verdict, as it shows neither a clear strength nor a critical weakness 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.

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

2.67x

How GWRE's Quick Ratio compares to sector peers.

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