Quick Ratio
Updated 174h ago
Sector Performance
18th percentileHPQ
0.33x
Sector Median
0.72x
Sector Avg
3.05x
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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0.33x
Sector Median
0.72x
Sector Avg
3.05x
How HPQ's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.