Quick Ratio

The quick ratio measures a company's ability to pay short-term obligations using its most liquid assets, like cash and receivables, excluding inventory.

At 0.35x, NI has only $0.35 in liquid assets for every $1 of current liabilities, indicating a thin liquidity position. This value sits well below the sector median of 0.72x and places NI in the 19th percentile among peers, meaning 81% of sector firms have a higher quick ratio. While the 8-quarter trend direction is increasing, the most recent quarter shows a decline of -5.4% from the prior quarter, and no year-over-year change is available. The combination of a very low absolute level and a recent downward move suggests heightened short-term liquidity risk, as the company is becoming even less able to cover immediate debts. This risk profile does not contradict the overall NEUTRAL verdict, because the low ratio and negative quarterly shift offset any positive momentum from the longer-term increase.

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