PDDNEUTRAL

PDD Quick Ratio Analysis

0.61x

Higher than 43% of Consumer Cyclical sector peers

Updated 240h ago·SEC filings & market data

Key Takeaway

PDD’s quick ratio of 0.61x means the company has only $0.61 in liquid assets (cash, receivables, and marketable securities) for every $1 of current liabilities due within a year, indicating a thinner short-term liquidity buffer.

Sector Performance

43th percentile

PDD

0.61x

Sector Median

0.70x

Sector Avg

1.86x

Prior Period

2.49x(Jun 2026)

↓ Declining
📊

Deep Analysis

PDD’s quick ratio of 0.61x means the company has only $0.61 in liquid assets (cash, receivables, and marketable securities) for every $1 of current liabilities due within a year, indicating a thinner short-term liquidity buffer.

This sits below the Consumer Cyclical sector median of 0.70x and places PDD in the 43rd percentile among its peers, meaning it has a weaker liquidity position than most in its group. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter drop of -75.5% from 2.49x to 0.61x; a year-over-year comparison is not available. The combination of a low quick ratio (below the sector median) and a sharp downward trend suggests elevated short-term liquidity risk, as the company’s ability to cover immediate obligations has worsened rapidly. This metric contradicts the overall NEUTRAL verdict, because a deteriorating liquidity position typically introduces additional financial risk that would warrant a more cautious assessment.

Frequently Asked Questions

What does the Quick Ratio tell investors about PDD?

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 PDD's Quick Ratio compare to its sector?

PDD's Quick Ratio of 0.61x compares to a Consumer Cyclical sector median of 0.70x, placing it in the 43th percentile.

Who are PDD's closest peers by Quick Ratio?

The closest Consumer Cyclical peers by Quick Ratio include: ABNB (0.75x), AMCR (0.75x), ANF (0.78x), ROST (0.88x), CROX (0.90x).

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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PDD

0.61x

Sector Median

0.70x

Sector Avg

1.86x

How PDD's Quick Ratio compares to sector peers.

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