Quick Ratio
Higher than 81% of Consumer Cyclical sector peers
Updated 296h ago
Sector Performance
81th percentileRL
1.36x
Sector Median
0.69x
Sector Avg
1.83x
Deep Analysis
RL’s current quick ratio of 1.36x means the company has $1.36 in liquid assets (cash, marketable securities, and receivables) for every $1 of short-term liabilities, indicating a comfortable ability to meet near-term obligations.
This ratio places RL well above the consumer cyclical sector median of 0.71x and in the 80th percentile among its peers, reflecting stronger liquidity than most competitors. The year-over-year change is not available (N/A), but the quarter-over-quarter change shows a slight decline of -1.4%, moving from 1.38x to 1.36x. The combination of a high liquidity level relative to peers with a small quarterly drop suggests low immediate risk of default, though the downward drift calls for monitoring to ensure it does not persist. This metric supports the overall NEUTRAL verdict: the solid quick ratio confirms financial stability, but the minor weakening prevents it from being a clear positive catalyst.
Frequently Asked Questions
What does the Quick Ratio tell investors about RL?
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 RL's Quick Ratio compare to its sector?
RL's Quick Ratio of 1.36x compares to a Consumer Cyclical sector median of 0.69x, placing it in the 81th percentile.
Who are RL's closest peers by Quick Ratio?
The closest Consumer Cyclical peers by Quick Ratio include: TSLA (0.60x), BOOT (0.40x), CPRI (0.39x), JACK (0.38x), AEO (0.38x).
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.
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1.36x
Sector Median
0.69x
Sector Avg
1.83x
How RL's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.