PYPLNEUTRAL

PYPL Quick Ratio Analysis

1.01x

Updated 963h ago·SEC filings & market data

Key Takeaway

The quick ratio measures whether a company can cover its short-term obligations with its most liquid assets, excluding inventory.

Sector Performance

68th percentile

PYPL

1.01x

Sector Median

0.71x

Sector Avg

2.67x

Prior Period

0.99x(Jul 2026)

↑ Improving

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Deep Analysis

The quick ratio measures whether a company can cover its short-term obligations with its most liquid assets, excluding inventory.

At 1.01x, PYPL has just enough liquid assets to pay current liabilities, a standard level of safety. This sits above the sector median of 0.72x, placing the company in the 68th percentile among peers, meaning it has a stronger short-term liquidity position than most. The year-over-year change is N/A, but quarter-over-quarter the ratio improved by +2.0%, moving from 0.99x to 1.01x; the 8-quarter trend is not provided. The combination of an above-median level and a positive quarterly uptick points to stable liquidity with no immediate stress, yet the very small buffer (1.01x) leaves limited room against a sudden cash squeeze. This metric supports the overall NEUTRAL verdict: liquidity is adequate and improving slightly, but it does not signal a clear competitive advantage or serious risk.

Frequently Asked Questions

What does the Quick Ratio tell investors about PYPL?

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.

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

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.