HPQNEUTRAL

Quick Ratio

0.33x

Updated 174h ago

Sector Performance

18th percentile

HPQ

0.33x

Sector Median

0.72x

Sector Avg

3.05x

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Deep Analysis

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

HPQ’s current ratio of 0.33x means it has only $0.33 of liquid assets for every $1 of current liabilities. That is well below the sector median of 0.74x, placing HPQ in the 16th percentile among its peers—meaning 84% of peers have a higher quick ratio. Year-over-year change is not available, but quarter-over-quarter the metric improved by +13.8% (from 0.29x to 0.33x). The combination of a very low level with a positive quarterly trend suggests that while liquidity risk is elevated, the company is addressing the weakness, creating a potential opportunity if the improvement continues. This metric partially contradicts the overall NEUTRAL verdict: the low quick ratio is a clear risk factor, but the recent uptick prevents a strongly bearish signal.

Frequently Asked Questions

What does the Quick Ratio tell investors about HPQ?

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 HPQ's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: EXR (0.16x), AWK (0.13x), DRI (0.13x), NIO (0.13x), SRE (0.11x).

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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HPQ

0.33x

Sector Median

0.72x

Sector Avg

3.05x

How HPQ's Quick Ratio compares to sector peers.

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