STEMNEUTRAL

STEM Quick Ratio Analysis

0.69x

Higher than 21% of Technology sector peers

Updated 179h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to pay its short-term debts using its most liquid assets, with a value below 1.00x suggesting it may struggle to cover immediate liabilities.

Sector Performance

21th percentile

STEM

0.69x

Sector Median

1.26x

Sector Avg

18.82x

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Deep Analysis

The quick ratio measures a company's ability to pay its short-term debts using its most liquid assets, with a value below 1.00x suggesting it may struggle to cover immediate liabilities.

STEM's current quick ratio of 0.69x sits well below the sector median of 1.24x, placing it in the 18th percentile among technology peers — meaning 82% of comparable companies have a higher quick ratio. Trend data for this metric is not available, with year-over-year and quarter-over-quarter changes both listed as N/A, so no directional pattern can be assessed. The combination of a low quick ratio and absent trend information introduces a risk that the company's liquidity position may be weak, but without historical context it is unclear whether this is a persistent or recent condition. This metric contradicts the overall NEUTRAL verdict because a quick ratio well below both the sector median and the 1.00x threshold typically signals elevated short-term financial risk, warranting a more cautious view.

Frequently Asked Questions

What does the Quick Ratio tell investors about STEM?

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 STEM's Quick Ratio compare to its sector?

STEM's Quick Ratio of 0.69x compares to a Technology sector median of 1.26x, placing it in the 21th percentile.

Who are STEM's closest peers by Quick Ratio?

The closest Technology peers by Quick Ratio include: APH (1.17x), BR (1.08x), ASAN (1.04x), ORCL (1.00x), AAPL (0.91x).

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Learn More About Quick Ratio

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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.