Quick Ratio

The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets, like cash and receivables, excluding inventory.

At 0.61x, PLUG has $0.61 in liquid assets for every $1 of current liabilities, which is below the sector median of 0.68x and places it in the 43rd percentile among Industrials peers — slightly weaker than the typical peer. A year-over-year comparison is not available, but the quarter-over-quarter change shows a 6.2% decline from 0.65x to 0.61x, indicating a recent deterioration in liquidity. The combination of a level already under the sector median and a downward trend points to increased short-term financial risk, as the company has less buffer to cover pressing debts. This metric directly contradicts the overall CAUTIOUS verdict: a low and falling quick ratio reinforces caution, as it suggests potential difficulty meeting near-term obligations without raising capital or selling inventory.

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