Quick Ratio
Higher than 7% of Basic Materials sector peers
Updated 152h ago
Sector Performance
7th percentileRIO
0.64x
Sector Median
1.91x
Sector Avg
4.76x
Deep Analysis
The quick ratio measures a company's ability to pay short-term liabilities with its most liquid assets, with a value above 1.0x generally considered healthy.
At 0.64x, RIO's quick ratio sits far below the Basic Materials sector median of 1.91x, placing it in the 7th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change is -34.7%, showing a sharp decline from the prior quarter's 0.98x. A low absolute level combined with a steep downward trend signals elevated short-term liquidity risk and potential difficulty meeting near-term obligations. This metric supports the overall NEUTRAL verdict because it highlights a key weakness that offsets any positive factors, leaving the stock without a clear bullish or bearish tilt at this time.
Frequently Asked Questions
What does the Quick Ratio tell investors about RIO?
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 RIO's Quick Ratio compare to its sector?
RIO's Quick Ratio of 0.64x compares to a Basic Materials sector median of 1.91x, placing it in the 7th percentile.
Who are RIO's closest peers by Quick Ratio?
The closest Basic Materials peers by Quick Ratio include: PAAS (1.91x), CDE (1.89x), AEM (2.03x), AG (2.51x), BHP (1.20x).
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.
Master RIO's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full RIO research report →RIO
0.64x
Sector Median
1.91x
Sector Avg
4.76x
How RIO's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.