POWINEUTRAL

POWI Quick Ratio Analysis

1.46x

Updated 84h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company’s ability to cover short-term obligations with its most liquid assets, and POWI’s current 1.46x means it holds $1.46 in cash-like assets for every $1 of current liabilities.

Sector Performance

83th percentile

POWI

1.46x

Sector Median

0.72x

Sector Avg

2.71x

Prior Period

1.17x(Jul 2026)

↑ Improving

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Deep Analysis

This is well above the sector median of 0.72x, placing POWI in the 84th percentile among peers. The year-over-year change is N/A, but the quarter-over-quarter change is +24.8%, as the metric rose from 1.17x to 1.46x in the most recent period. The combination of a high liquidity level and a rapid quarterly improvement suggests reduced short-term default risk and greater financial flexibility, though no long-term trend is available. This metric supports the overall NEUTRAL verdict by confirming solid short-term health without indicating that the stock is undervalued or poised for growth.

Frequently Asked Questions

What does the Quick Ratio tell investors about POWI?

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.

Who are POWI's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: MELI (0.11x), LOW (0.10x), DRI (0.09x), NCLH (0.08x), PAYC (0.08x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.