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Quick Ratio History Chart
Chart any stock's quick ratio — the acid test — across the last 10 fiscal years and see whether liquid assets have been consistently covering short-term obligations without relying on inventory. Color-coded bars flag each year's liquidity zone. Pair it with the quick ratio calculator for a live reading, the quick ratio screener to benchmark against peers, or current ratio history to see how much of the liquidity cushion depends on inventory.
How to Read Quick Ratio Trends
The quick ratio — also called the acid-test ratio — measures how many dollars of immediately liquid assets (cash, short-term investments, and receivables) a company holds for every dollar of current liabilities due within the year. By excluding inventory, it answers a sharper question than the current ratio: if the company could not sell a single unit of product today, could it still meet its near-term obligations?
A quick ratio at or above 1.0× means the company can cover current liabilities with liquid assets alone. Trending below 1.0× over several years may signal deteriorating liquidity, aggressive working capital management, or heavy reliance on inventory financing — context that matters most when credit markets tighten. Compare to the current ratio history to see how much inventory contributes to the cushion, and check the working capital calculator for the absolute dollar buffer.
Industry norms vary significantly. Technology and software companies often run quick ratios well above 1.5× because they carry little inventory. Retailers and manufacturers frequently run below 1.0× and rely on fast inventory turns to stay liquid. Use the quick ratio screener to benchmark a company against sector peers before drawing conclusions from the chart alone.
Frequently Asked Questions
What does the quick ratio history chart show?
It plots a company's quick ratio — cash, short-term investments, and net receivables divided by current liabilities — for up to 10 fiscal years. Unlike the current ratio, it excludes inventory, making it a stricter acid test of whether a company can meet short-term obligations with its most liquid assets. Bars are color-coded: green at or above 1.0× (strong), yellow for 0.7–1.0× (adequate), and red below 0.7× (liquidity stress).
What is a good quick ratio?
A quick ratio at or above 1.0× is generally considered healthy — it means the company can cover every dollar of current liabilities with cash, investments, and receivables alone, without selling inventory. Between 0.7× and 1.0× is workable for businesses with predictable cash flows or fast-turning receivables. Below 0.7× signals that liquid assets fall well short of near-term obligations, which may require asset sales, credit lines, or inventory liquidation to bridge the gap.
How is the quick ratio calculated here?
Quick ratio equals (cash + short-term investments + net receivables) divided by total current liabilities, taken from Yahoo Finance quarterly balance sheet filings aggregated to the most recent quarter of each fiscal year. This approach captures the latest balance sheet snapshot per fiscal year rather than an older year-end filing, giving a more current picture.
What is the difference between the quick ratio and the current ratio?
The current ratio divides all current assets by current liabilities, while the quick ratio strips out inventory before dividing. The difference matters most for companies with large or slow-moving inventory — a retailer with a 1.8× current ratio but a 0.6× quick ratio is carrying significant inventory risk. Comparing both ratios side by side reveals how much of a company's liquidity cushion depends on converting stock to cash.
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