Quick Ratio

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

Paylocity’s quick ratio of 0.09x means it has only $0.09 in liquid assets for every $1 of current liabilities, indicating very low short-term liquidity. This is far below the Technology sector median of 1.34x and places the company at the 0th percentile among its peers, meaning nearly every other sector company has a higher quick ratio. The year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no trend data available to assess whether liquidity is improving or deteriorating. The extremely low level alone signals elevated short-term financial risk, but the absence of trend information makes it impossible to gauge direction. This metric contradicts the overall NEUTRAL verdict by highlighting a potential liquidity weakness that could weigh on the stock’s risk profile.

Frequently Asked Questions

Closest Sector Peers