Quick Ratio
Higher than 30% of Consumer Cyclical sector peers
Updated 49h ago
Sector Performance
30th percentileJD
0.41x
Sector Median
0.69x
Sector Avg
1.77x
Deep Analysis
The quick ratio measures a company's ability to pay short-term liabilities using its most liquid assets, excluding inventory; a value of 0.41x means JD has only $0.41 in cash, marketable securities, and receivables for every $1 of current debt.
This is well below the Consumer Cyclical sector median of 0.69x, placing JD in the 30th percentile among peers, indicating weaker short-term liquidity than most competitors. The year-over-year change is not available, but the quarter-over-quarter drop of 47.4% from 0.78x to 0.41x reveals a sudden deterioration in liquidity coverage. The combination of already low absolute level and a sharp quarterly decline suggests elevated short-term financial risk, as the company now has less liquidity cushion to handle unexpected obligations or a downturn. This metric does not support the overall NEUTRAL verdict; instead, it points to a potential liquidity concern that could warrant caution despite the stock's neutral rating.
Frequently Asked Questions
What does the Quick Ratio tell investors about JD?
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.
How does JD's Quick Ratio compare to its sector?
JD's Quick Ratio of 0.41x compares to a Consumer Cyclical sector median of 0.69x, placing it in the 30th percentile.
Who are JD's closest peers by Quick Ratio?
The closest Consumer Cyclical peers by Quick Ratio include: TSLA (0.60x), ROST (0.88x), CPRI (0.39x), AEO (0.38x), JACK (0.38x).
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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0.41x
Sector Median
0.69x
Sector Avg
1.77x
How JD's Quick Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.