Quick Ratio

A quick ratio of 0.42x means HPE has only $0.42 in liquid assets—cash, marketable securities, and receivables—for every $1 of current liabilities due within a year, indicating limited short-term liquidity.

This is well below the sector median of 0.72x, placing HPE at the 24th percentile among its sector peers, meaning three-quarters of peers have a higher quick ratio. The metric is decreasing, with a quarter-over-quarter decline of -26.3% from 0.57x, and a year-over-year change is not available (N/A). The combination of a low quick ratio (0.42x) and a continued downward trend points to elevated liquidity risk, potentially straining HPE’s ability to meet short-term obligations without selling inventory or raising capital. This weakness in liquidity pressures the overall investment case, though the stock’s NEUTRAL verdict suggests other factors offset this concern. Therefore, this metric contradicts the NEUTRAL view by highlighting a specific financial vulnerability in HPE’s balance sheet.

Frequently Asked Questions

Closest Sector Peers