ORLY Quick Ratio Analysis

A quick ratio of 0.08x means the company has only $0.08 of liquid assets (cash and receivables) for every $1 of short-term liabilities, indicating limited ability to cover near-term obligations without selling inventory or raising cash.

This is far below the sector median of 0.72x, placing ORLY at the 3rd percentile among peers, meaning nearly all competitors hold more liquidity. The year-over-year change is N/A, so no annual comparison is available; quarter-over-quarter, the ratio improved by +14.3% from 0.07x to 0.08x. While the level is very low, the positive quarterly direction shows a small step toward better liquidity, though the absolute figure remains a concern. This combination of a weak level and only a minor recent improvement suggests elevated short-term financial risk, but the slight uptick offers limited room for optimism. The metric largely contradicts the overall NEUTRAL verdict because the liquidity position is extreme relative to peers, yet the improving trend keeps it from being a clear negative signal.

Frequently Asked Questions