NETCAUTIOUS

NET Quick Ratio Analysis

0.54x

Higher than 9% of Technology sector peers

Updated 24h ago·SEC filings & market data

Key Takeaway

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

Sector Performance

9th percentile

NET

0.54x

Sector Median

1.24x

Sector Avg

12.61x

Prior Period

1.90x(May 2026)

↓ Declining

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Deep Analysis

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

Cloudflare's current ratio of 0.54x means it has only $0.54 in liquid assets for every $1.00 of current liabilities — a low level of short-term liquidity. This sits well below the sector median of 1.34x, placing the company in the 6th percentile among technology peers. The year-over-year change is not available, but quarter-over-quarter the metric dropped by 71.6% from 1.90x to 0.54x, indicating a sharp recent deterioration. The combination of a very low level and a steep quarterly decline suggests elevated liquidity risk that could pressure operations or require external financing. This metric directly contradicts the overall NEUTRAL verdict, as the weak quick ratio and negative trend point to a potential red flag that would typically warrant a more cautious view.

Frequently Asked Questions

What does the Quick Ratio tell investors about NET?

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 NET's Quick Ratio compare to its sector?

NET's Quick Ratio of 0.54x compares to a Technology sector median of 1.24x, placing it in the 9th percentile.

Who are NET's closest peers by Quick Ratio?

The closest Technology peers by Quick Ratio include: CRWD (1.33x), TTD (1.45x), QCOM (1.00x), BOX (0.80x), SONY (0.80x).

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

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.