SHOPBULLISH

SHOP Quick Ratio Analysis

1.47x

Updated 118h ago·SEC filings & market data

Key Takeaway

The current quick ratio of 1.47x means SHOP holds $1.47 in highly liquid assets—like cash, marketable securities, and receivables—for every $1 of short-term liabilities, without relying on inventory.

Sector Performance

83th percentile

SHOP

1.47x

Sector Median

0.72x

Sector Avg

2.69x

Prior Period

1.42x(Aug 2026)

↑ Improving

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Deep Analysis

That compares to a sector median of 0.72x, placing SHOP in the 84th percentile among peers. The year-over-year change is N/A, but the quarter-over-quarter change is +3.5%, moving from 1.42x to 1.47x over the last two reported values. The combination of a level well above the sector and a rising near-term trend points to low liquidity risk and increased financial flexibility. This supports the overall BULLISH verdict: the improving quick ratio strengthens the case for holding or buying the stock.

Frequently Asked Questions

What does the Quick Ratio tell investors about SHOP?

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 SHOP's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: IP (0.60x), TAP (0.60x), PNR (0.60x), HIMS (0.60x), LW (0.60x).

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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.