Quick Ratio

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

At 0.07x, PAYC holds only $0.07 of liquid assets for every $1 of short-term debt, indicating a very low liquidity cushion. This ratio sits far below the sector median of 0.72x, placing the company at the 2nd percentile among peers — meaning 98% of similar companies have stronger liquidity. Over the last eight quarters, the metric has been stable, though the most recent quarter-over-quarter change shows a decline of -12.5% (year-over-year data is not available). The combination of an extremely low level and a stable yet declining trend points to heightened liquidity risk, as the company has minimal buffer against sudden cash needs. This metric contradicts the overall NEUTRAL verdict by exposing a notable weakness that could pressure the stock if short-term obligations become due.

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