Quick Ratio
Updated 80h ago
Sector Performance
42th percentileKHC
0.63x
Sector Median
0.71x
Sector Avg
3.05x
Deep Analysis
The quick ratio of 0.63x measures a company’s ability to pay short-term obligations using its most liquid assets, excluding inventory; a ratio below 1.0 suggests potential liquidity strain.
At 0.63x, KHC sits below the sector median of 0.71x and ranks in the 41st percentile among peers, indicating slightly worse liquidity than the typical competitor. The year-over-year change is not available, but the quarter-over-quarter decline of -13.7% shows a clear deterioration from the prior value of 0.73x. A quick ratio already below the sector median combined with a sharp quarterly drop points to increasing short-term financial risk rather than opportunity. This metric directly supports the overall CAUTIOUS verdict, as the weakening liquidity trend reinforces concerns about the company’s ability to cover near-term liabilities.
Frequently Asked Questions
What does the Quick Ratio tell investors about KHC?
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 KHC's closest peers by Quick Ratio?
The closest peers by Quick Ratio include: EXR (0.16x), NIO (0.13x), DRI (0.13x), AWK (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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0.63x
Sector Median
0.71x
Sector Avg
3.05x
How KHC's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.