HII Quick Ratio Analysis

The quick ratio measures a company's ability to pay short-term debts using only its most liquid assets (cash, marketable securities, and receivables), excluding inventory; at 0.18x, HII has $0.18 in liquid assets for every $1 of current liabilities.

This sits far below the sector median of 0.72x, placing the company in the 6th percentile among its peers, meaning nearly all competitors hold stronger short-term liquidity. The trend data is limited: year-over-year change is N/A, but quarter-over-quarter the ratio fell 21.7% from 0.23x to 0.18x, showing a recent decline. The combination of a very low level and a worsening quarterly path points to elevated near-term liquidity risk, as the company could struggle to cover obligations without selling inventory or raising financing. This level and trend contradict any bullish view, but given the overall NEUTRAL verdict, the quick ratio acts as a caution flag rather than a decisive negative. Therefore, the metric does not fully support the neutral stance — it leans toward a more bearish assessment of short-term financial flexibility.

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