Quick Ratio

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

At 1.47x, my company holds $1.47 in liquid assets for every $1 of current liabilities, indicating a comfortable liquidity buffer. This ratio places it well above the sector median of 0.73x and in the 85th percentile among peers, meaning it has stronger short-term liquidity than most comparable firms. The year-over-year change is not available, but the quarter-over-quarter decline of -5.8% (from 1.56x to 1.47x) shows an erosion of that buffer in the most recent period. A high absolute level combined with a recent downward trend suggests that while liquidity risk is currently low, the trajectory warrants attention if the decline continues. This metric does not contradict the overall NEUTRAL verdict, as the strong position supports stability but the negative trend keeps the outlook balanced.

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