Quick Ratio

A quick ratio measures a company's ability to pay short-term liabilities with its most liquid assets; a value of 1.0x or higher is generally considered healthy.

At 0.08x, TSCO holds only $0.08 in cash and equivalents for every $1.00 of current liabilities, indicating severe liquidity constraints. This ratio places it in the 3rd percentile among sector peers, far below the sector median of 0.72x, meaning nearly all competitors have stronger short-term financial flexibility. Trend data is not available, with year-over-year and quarter-over-quarter changes both marked as N/A, so no directional pattern can be assessed. The combination of an extremely low quick ratio and the absence of trend information suggests elevated near-term insolvency risk, as the company lacks the liquid assets to cover unexpected obligations. This metric contradicts the overall NEUTRAL verdict, as such a liquidity shortfall typically signals a critical warning for investors.

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