VALENEUTRAL

Quick Ratio

0.55x

Higher than 0% of Basic Materials sector peers

Updated 152h ago

Sector Performance

0th percentile

VALE

0.55x

Sector Median

1.91x

Sector Avg

4.76x

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Deep Analysis

A quick ratio of 0.55x means Vale has only $0.55 in liquid assets (like cash and receivables) for every $1 of short-term liabilities, indicating a tight near-term liquidity position.

This is far below the Basic Materials sector median of 1.91x and places Vale in the 0th percentile among peers—the lowest possible rank. The year-over-year change is not available, but the quarter-over-quarter drop of -17.9% shows a clear deterioration in liquidity from 0.67x to 0.55x over the recent quarter. The combination of an already low ratio and a sharp recent decline points to elevated short-term financial risk, as the company has less cushion to cover obligations. This metric contradicts the overall NEUTRAL verdict, as it signals a potential liquidity concern that investors should weigh against other factors.

Frequently Asked Questions

What does the Quick Ratio tell investors about VALE?

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 VALE's Quick Ratio compare to its sector?

VALE's Quick Ratio of 0.55x compares to a Basic Materials sector median of 1.91x, placing it in the 0th percentile.

Who are VALE's closest peers by Quick Ratio?

The closest Basic Materials peers by Quick Ratio include: PAAS (1.91x), CDE (1.89x), AEM (2.03x), AG (2.51x), BHP (1.20x).

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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VALE

0.55x

Sector Median

1.91x

Sector Avg

4.76x

How VALE's Quick Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.