MKCNEUTRAL

MKC Quick Ratio Analysis

0.29x

Updated 51h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover short-term debts using its most liquid assets (cash, marketable securities, receivables), excluding inventory.

Sector Performance

14th percentile

MKC

0.29x

Sector Median

0.71x

Sector Avg

3.04x

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Deep Analysis

The quick ratio measures a company's ability to cover short-term debts using its most liquid assets (cash, marketable securities, receivables), excluding inventory.

MKC’s current quick ratio of 0.29x is far below the sector median of 0.75x, placing it in the 11th percentile among sector peers — meaning 89% of peers have higher liquidity. Because only a single historical value (0.29x) is provided, the year-over-year change and quarter-over-quarter change are both listed as N/A, so no trend direction can be assessed. The combination of a very low quick ratio with no trend data points to elevated liquidity risk, as the company may struggle to meet short-term obligations without selling inventory or raising capital. This metric contradicts the overall NEUTRAL verdict by highlighting a specific financial vulnerability that warrants closer scrutiny, though it does not alone change the balanced view.

Frequently Asked Questions

What does the Quick Ratio tell investors about MKC?

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 MKC's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: EXR (0.16x), AWK (0.13x), NIO (0.13x), DRI (0.13x), SRE (0.11x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.