NOW Quick Ratio Analysis
Higher than 17% of TECHNOLOGY sector peers
Updated 77h ago·SEC filings & market data
Key Takeaway
The quick ratio measures whether a company can cover its immediate liabilities with its most liquid assets, excluding inventory, and a reading of 0.39x means NOW holds only $0.39 of readily available assets for every $1 of short-term obligations.
Sector Performance
17th percentileNOW
0.39x
Sector Median
0.81x
Sector Avg
0.97x
Prior Period
0.44x(Jul 2026)
Deep Analysis
The quick ratio measures whether a company can cover its immediate liabilities with its most liquid assets, excluding inventory, and a reading of 0.39x means NOW holds only $0.39 of readily available assets for every $1 of short-term obligations.
That level is well below the sector median of 0.64x, placing NOW in the 20th percentile among technology peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 11.4%, with the ratio dropping from 0.44x to 0.39x; the 8-quarter trend direction is also not available. A low ratio combined with a recent decline raises liquidity risk, as the company has less buffer to meet near-term bills if cash flows weaken. However, this metric alone does not confirm a material problem, as technology firms often rely on recurring revenue and access to capital. This finding contradicts a NEUTRAL stance by pointing to a specific weakness, yet it does not override the broader case for holding the stock.
Frequently Asked Questions
What does the Quick Ratio tell investors about NOW?
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 NOW's Quick Ratio compare to its sector?
NOW's Quick Ratio of 0.39x compares to a TECHNOLOGY sector median of 0.81x, placing it in the 17th percentile.
Who are NOW's closest peers by Quick Ratio?
The closest TECHNOLOGY peers by Quick Ratio include: QCOM (0.81x), KLAC (1.05x), INTC (0.47x), CSCO (0.34x), LRCX (1.84x).
Learn More About Quick Ratio
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.
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0.39x
Sector Median
0.81x
Sector Avg
0.97x
How NOW's Quick Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.