Quick Ratio

A quick ratio of 0.68x means Zscaler has only $0.68 in liquid assets (like cash and receivables) for every $1 of short-term liabilities, indicating potential difficulty covering immediate obligations.

This sits well below the sector median of 1.32x and places Zscaler in the 16th percentile among technology peers, meaning most competitors have stronger liquidity. The metric has been decreasing over the last eight quarters, with no year-over-year change available and a quarter-over-quarter drop of -60.2% from the previous 1.71x to the current 0.68x. The combination of a low quick ratio and a pronounced downward trend signals elevated short-term liquidity risk, as the company’s ability to meet debts without selling inventory is weakening rapidly. This contradicts the overall NEUTRAL verdict because a deteriorating liquidity position typically warrants a more cautious outlook, though other factors may balance the assessment.

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