NVDABULLISH

Quick Ratio

1.23x

Higher than 46% of Technology sector peers

Updated 43h ago

Sector Performance

46th percentile

NVDA

1.23x

Sector Median

1.28x

Sector Avg

11.83x

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Deep Analysis

NVIDIA’s current Quick Ratio of 1.23x means it holds $1.23 in liquid assets for every $1 of current liabilities, indicating a solid short-term liquidity position.

This ratio sits below the Technology sector median of 1.31x, placing the company at the 45th percentile among peers—slightly below average. The year-over-year change is not available, but the quarter-over-quarter drop of -55.4% (from 2.76x to 1.23x) signals a sharp decline in liquidity. Despite the level being near the sector median, the steep QoQ decline introduces near-term liquidity risk that could pressure the company if cash needs rise. However, this single metric does not contradict the overall BULLISH verdict, as NVIDIA’s strong cash generation and market position may offset the temporary dip; the metric is a watchpoint rather than a decisive negative factor.

Frequently Asked Questions

What does the Quick Ratio tell investors about NVDA?

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 NVDA's Quick Ratio compare to its sector?

NVDA's Quick Ratio of 1.23x compares to a Technology sector median of 1.28x, placing it in the 46th percentile.

Who are NVDA's closest peers by Quick Ratio?

The closest Technology peers by Quick Ratio include: BOX (0.80x), ADBE (0.79x), ASML (0.70x), STEM (0.69x), BILL (0.69x).

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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NVDA

1.23x

Sector Median

1.28x

Sector Avg

11.83x

How NVDA's Quick Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.