WATNEUTRAL

WAT Quick Ratio Analysis

1.05x

Updated 1011h ago·SEC filings & market data

Key Takeaway

The quick ratio measures whether a company can cover its immediate bills using only its most liquid assets, like cash and receivables; at 1.05x, WAT holds $1.05 of these assets for every $1 of current liabilities.

Sector Performance

70th percentile

WAT

1.05x

Sector Median

0.71x

Sector Avg

2.67x

Prior Period

0.97x(Sep 2026)

↑ Improving

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Deep Analysis

That level sits above the sector median of 0.72x, placing the company in the 70th percentile among peers, meaning most comparable firms have a thinner liquidity cushion. The ratio rose from 0.97x last quarter, a +8.2% quarter-over-quarter improvement, though no year-over-year figure is available. This combination of an above-median level with an upward trend suggests short-term liquidity risk is low and currently improving. That supports the neutral overall verdict: the company is not under immediate financial strain, but the quick ratio alone does not point to an opportunity strong enough to justify an overweight position.

Frequently Asked Questions

What does the Quick Ratio tell investors about WAT?

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.

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.