Quick Ratio
Higher than 56% of Communication Services sector peers
Updated 94h ago
Sector Performance
56th percentileSPOT
1.22x
Sector Median
1.18x
Sector Avg
2.03x
Deep Analysis
The quick ratio measures a company’s ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, receivables) — excluding inventory.
Spotify’s current quick ratio of 1.22x matches the Communication Services sector median exactly, placing it at the 50th percentile among peers. A year-over-year comparison is not available, but the ratio dropped 39.9% quarter-over-quarter from 2.03x to 1.22x. The combination of a sector‑median level with a steep quarterly decline suggests liquidity has tightened materially, raising near‑term risk even though the absolute ratio is still adequate. This metric supports the NEUTRAL verdict because the current level is neither weak nor strong, but the negative trend warrants monitoring for further deterioration.
Frequently Asked Questions
What does the Quick Ratio tell investors about SPOT?
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 SPOT's Quick Ratio compare to its sector?
SPOT's Quick Ratio of 1.22x compares to a Communication Services sector median of 1.18x, placing it in the 56th percentile.
Who are SPOT's closest peers by Quick Ratio?
The closest Communication Services peers by Quick Ratio include: NFLX (1.18x), VOD (1.11x), DASH (1.09x), ZD (1.06x), NYT (1.44x).
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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1.22x
Sector Median
1.18x
Sector Avg
2.03x
How SPOT's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.