SJMCAUTIOUS

SJM Quick Ratio Analysis

0.28x

Updated 921h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables), excluding inventory.

Sector Performance

11th percentile

SJM

0.28x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.30x(Apr 2026)

↓ Declining

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Deep Analysis

The quick ratio measures a company's ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables), excluding inventory.

At 0.28x, SJM holds only $0.28 in liquid assets for every $1.00 of current liabilities, indicating a tight liquidity position. This is well below the sector median of 0.71x, placing SJM in the 12th percentile among sector peers. No year-over-year or quarter-over-quarter changes are available, so the metric lacks a trend direction or historical context. The combination of a low quick ratio and no trend data suggests current liquidity risk is elevated, but without direction, the risk cannot be assessed as improving or worsening. This metric directly supports the overall CAUTIOUS verdict, as the weak liquidity buffer increases financial vulnerability.

Frequently Asked Questions

What does the Quick Ratio tell investors about SJM?

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 SJM's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (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.