METANEUTRAL

META Quick Ratio Analysis

0.66x

Higher than 40% of Communication Services sector peers

Updated 681h ago·SEC filings & market data

Key Takeaway

A quick ratio of 0.66x means Meta has only 66 cents of easily accessible assets—like cash and receivables—for every dollar of short-term liabilities it must pay within a year.

Sector Performance

40th percentile

Deep Analysis

A quick ratio of 0.66x means Meta has only 66 cents of easily accessible assets—like cash and receivables—for every dollar of short-term liabilities it must pay within a year.

That compares poorly to the Communication Services sector median of 0.93x, placing Meta in the 29th percentile, so most sector peers hold more liquid cushion per dollar of current debt. The trend data is incomplete: the year-over-year change is N/A, but the quarter-over-quarter change shows a 24.1% drop from the prior quarter's 0.87x. This combination—already below the sector median and falling sharply—points to a tighter near-term liquidity position, which raises the risk that Meta could face difficulty covering obligations without new cash flow. For an investor, that is a caution flag, not a growth signal. This metric therefore contradicts the overall BULLISH verdict, as the quick ratio indicates weakening short-term financial flexibility despite the stock's positive outlook.

Frequently Asked Questions

What does the Quick Ratio tell investors about META?

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 META's Quick Ratio compare to its sector?

META's Quick Ratio of 0.66x compares to a Communication Services sector median of 0.79x, placing it in the 40th percentile.

Who are META's closest peers by Quick Ratio?

The closest Communication Services peers by Quick Ratio include: NFLX (0.91x), GOOGL (0.99x), BIDU (0.53x), VOD (0.46x), TWTR (7.01x).

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Learn More About Quick Ratio

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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.