SOUNWCAUTIOUS

SOUNW Quick Ratio Analysis

3.35x

Higher than 91% of Technology sector peers

Updated 27h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets, excluding inventory.

Sector Performance

91th percentile

SOUNW

3.35x

Sector Median

1.24x

Sector Avg

12.46x

Prior Period

3.80x(Jun 2026)

↓ Declining

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Deep Analysis

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets, excluding inventory.

SoundHound’s current ratio of 3.35x is well above the technology sector median of 1.24x, placing it in the 91st percentile among peers. A year-over-year comparison is not available, but the ratio declined 11.8% from the prior quarter. While a high quick ratio suggests ample liquidity and low near-term default risk, the downward quarter-over-quarter trend signals that this cash cushion is shrinking. That combination reduces the margin of safety for investors, especially given the stock’s overall CAUTIOUS verdict from the platform. The metric supports a cautious stance because the elevated level alone does not offset the deteriorating direction.

Frequently Asked Questions

What does the Quick Ratio tell investors about SOUNW?

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 SOUNW's Quick Ratio compare to its sector?

SOUNW's Quick Ratio of 3.35x compares to a Technology sector median of 1.24x, placing it in the 91th percentile.

Who are SOUNW's closest peers by Quick Ratio?

The closest Technology peers by Quick Ratio include: SMTC (1.24x), NVDA (1.23x), BR (0.85x), SONY (0.80x), GRAB (0.69x).

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

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.