TPR Quick Ratio Analysis

The quick ratio measures a company's ability to pay short-term liabilities with its most liquid assets; a value above 1.0x is generally considered healthy, so TPR's 0.92x indicates it has slightly less than $1 in liquid assets for every $1 of current liabilities.

Compared to the sector median of 0.71x, TPR's ratio sits at the 65th percentile among its peers, meaning it ranks above the typical company in its industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 17.1%, moving from 1.11x to 0.92x. While the current level is above the sector median, the sharp quarterly drop signals that liquidity is weakening. This combination of an above-median level paired with a negative trend introduces risk, as the cushion is eroding. The declining quick ratio supports the CAUTIOUS overall verdict, because deteriorating liquidity raises concern despite the still-favorable peer comparison.

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