PYPLNEUTRAL

PYPL Quick Ratio Analysis

0.99x

Updated 553h ago·SEC filings & market data

Key Takeaway

The Quick Ratio measures a company’s ability to cover immediate liabilities with its most liquid assets, excluding inventory.

Sector Performance

69th percentile

PYPL

0.99x

Sector Median

0.71x

Sector Avg

3.04x

Prior Period

1.22x(May 2026)

↓ Declining

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Deep Analysis

The Quick Ratio measures a company’s ability to cover immediate liabilities with its most liquid assets, excluding inventory.

At 0.99x, PYPL has nearly $1 of liquid assets for every $1 of short-term debt. This is above the sector median of 0.73x, placing it in the 69th percentile among peers. However, the metric is decreasing, with a quarter-over-quarter decline of -18.9% (year-over-year change is not available). A ratio near 1.0x combined with a sharp downward trend suggests liquidity is adequate today but deteriorating, which could signal rising short-term risk if the slide continues. This pattern partially supports the overall NEUTRAL verdict: the current level is not alarming, but the negative trajectory warrants caution.

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.

Who are PYPL's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: WM (0.69x), CHD (0.76x), IRM (0.63x), HIMS (0.60x), WMB (0.59x).

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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.