Quick Ratio

The Quick Ratio measures a company’s ability to cover its short-term liabilities using its most liquid assets (cash, marketable securities, receivables), excluding inventory.

At 0.28x, SJM holds only $0.28 in liquid assets for every $1 of current liabilities, indicating a thin liquidity position. This sits well below the sector median of 0.71x, placing SJM in the 12th percentile among its peers, meaning most competitors have stronger short-term liquidity. Both the year-over-year and quarter-over-quarter changes are listed as N/A, and no multi-quarter trend is available, so the analysis relies solely on the current snapshot. The combination of a very low quick ratio with no improving trend signals elevated near-term financial risk, as the company may struggle to meet obligations without external funding or asset sales. This metric directly supports the CAUTIOUS verdict by highlighting a material liquidity weakness that increases investment risk.

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