MHK Quick Ratio Analysis

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets, like cash and marketable securities, without relying on inventory sales.

At 0.91x, MHK has $0.91 of liquid assets for every $1 of current liabilities due within a year, meaning it does not fully cover short-term obligations with cash alone. This is above the sector median of 0.72x, placing MHK in the 63rd percentile among peers, so its liquidity position is stronger than most comparable firms. The year-over-year change is N/A, and the eight-quarter trend is also N/A, but the quarter-over-quarter change is -6.2%, moving from 0.97x to 0.91x. The combination of an above-median level with a recent decline suggests moderate liquidity pressure is emerging, yet the current level remains adequate relative to the sector. This metric supports the overall NEUTRAL verdict: the quick ratio is neither a clear strength nor a critical weakness, but the downward turn warrants monitoring.

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