Quick Ratio

The quick ratio of 2.30x means the company has $2.30 in liquid assets (cash, marketable securities, and receivables) for every $1 of current liabilities, indicating a strong ability to cover short-term obligations without relying on inventory sales.

This far exceeds the sector median of 0.74x and places TDG in the 92nd percentile among peers, suggesting above-average liquidity relative to the industry. While the trend over the last eight quarters has been increasing, the most recent quarter shows a sharp drop of -52.9% from 4.88x to 2.30x; year-over-year data is not available. The combination of a still-high ratio with a recent steep decline implies that liquidity remains comfortable but is eroding quickly, which could signal rising short-term risk if the trend continues. This mixed picture—strong current level but a deteriorating short-term trajectory—supports the overall NEUTRAL verdict by neither confirming a clear buy signal nor a warning of imminent distress.

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