Quick Ratio

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets — cash, marketable securities, and receivables — without relying on inventory.

At 0.13x, MELI holds only $0.13 in liquid assets for every $1 of current obligations, a very thin cushion. This sits far below the Consumer Cyclical sector median of 0.69x, placing MELI in the 7th percentile among peers, meaning 93% of sector companies have a higher quick ratio. The metric has been decreasing over the last eight quarters: year-over-year change is not available, but quarter-over-quarter it dropped 27.8% from 0.18x to 0.13x. The combination of an extremely low level and a consistent downward trend signals elevated liquidity risk, as the company has less room to cover unexpected cash needs. This contradicts the overall NEUTRAL verdict, because a quick ratio this low and still falling would typically flag a bearish concern rather than support a balanced view.

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