Quick Ratio

The Quick Ratio measures a company's ability to cover its short-term obligations using only its most liquid assets (cash, marketable securities, and receivables).

A current ratio of 0.99x means the company has $0.99 of liquid assets for every $1.00 of current liabilities, just below the 1-to-1 safety threshold but still close. Among sector peers, the median Quick Ratio is 0.71x, and MCHP ranks in the 69th percentile, indicating it holds more liquidity than most peers. The year-over-year change is not available, but quarter-over-quarter the ratio declined by 1.0% from 1.00x to 0.99x. While the level is slightly below 1.0x, it remains above the sector median, and the small sequential decline does not signal a material shift in liquidity risk. This combination of an above-median ratio with a minor downward trend suggests a moderate risk profile that is neither alarming nor compelling. Therefore, this metric supports the overall NEUTRAL verdict by showing no strong deviation from typical liquidity dynamics.

Frequently Asked Questions

Closest Sector Peers