Imagine two companies. For every $1 of short-term bills, a biotech firm holds $5.13 in cash and quick assets. A discount store holds just 32 cents. Why such a big gap? The answer is how each business earns money. Biotech firms sit on cash raised from investors, while discount stores collect cash at the register every day and do not need a big cushion. That is the story behind 5.13x for biotechnology and 0.32x for discount stores, and the other 111 industries fall somewhere in between.
Key Takeaways
- Biotechnology leads all industries at 5.13x, more than double the next sector.
- Discount stores trail at 0.32x, followed by home improvement retail at 0.42x.
- The median industry ratio is 1.07x, and 48 of 113 industries (42%) sit below 1.0x, based on the dataset.
- Medical and semiconductor businesses hold the strongest buffers outside biotech.
What the Quick Ratio Measures
The quick ratio compares a company’s most liquid assets to its short-term bills.
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Inventory is excluded because it can take months to sell.
Example: A software firm holds $200,000 in cash, $100,000 in securities, and $300,000 in receivables against $500,000 of current liabilities. Its quick ratio is 1.2x, so it can cover every near-term bill with room to spare.
Quick Ratio by Industry 2026
| Industry | Avg. Quick Ratio | Companies |
|---|---|---|
| Advertising Agencies | 1.05 | 27 |
| Aerospace & Defense | 1.37 | 67 |
| Agricultural Inputs | 1.54 | 11 |
| Airlines | 0.51 | 16 |
| Airports & Air Services | 0.94 | 5 |
| Aluminum | 1.01 | 4 |
| Apparel Manufacturing | 0.89 | 15 |
| Apparel Retail | 0.56 | 29 |
| Asset Management | 2.17 | 85 |
| Auto Manufacturers | 0.54 | 17 |
| Auto Parts | 1 | 43 |
| Auto & Truck Dealerships | 0.67 | 23 |
| Beverages – Non-Alcoholic | 1 | 12 |
| Beverages – Wineries & Distilleries | 0.61 | 5 |
| Biotechnology | 5.13 | 446 |
| Broadcasting | 1.13 | 12 |
| Building Materials | 1.19 | 13 |
| Building Products & Equipment | 1.07 | 27 |
| Capital Markets | 1.55 | 61 |
| Chemicals | 1.45 | 13 |
| Coking Coal | 2.26 | 5 |
| Communication Equipment | 1.64 | 44 |
| Computer Hardware | 1.7 | 31 |
| Conglomerates | 0.95 | 16 |
| Consulting Services | 1.25 | 16 |
| Consumer Electronics | 1.38 | 8 |
| Copper | 2.01 | 5 |
| Credit Services | 1.54 | 41 |
| Diagnostics & Research | 2.71 | 42 |
| Discount Stores | 0.32 | 8 |
| Drug Manufacturers – General | 0.85 | 14 |
| Drug Manufacturers – Specialty & Generic | 2.47 | 48 |
| Education & Training Services | 1.12 | 21 |
| Electrical Equipment & Parts | 1.25 | 41 |
| Electronic Components | 1.94 | 38 |
| Electronic Gaming & Multimedia | 1.26 | 14 |
| Electronics & Computer Distribution | 1.17 | 8 |
| Engineering & Construction | 1.13 | 40 |
| Entertainment | 0.81 | 38 |
| Farm & Heavy Construction Machinery | 1.02 | 19 |
| Farm Products | 0.75 | 14 |
| Financial Data & Stock Exchanges | 1.09 | 11 |
| Food Distribution | 0.7 | 9 |
| Footwear & Accessories | 0.89 | 10 |
| Furnishings, Fixtures & Appliances | 0.93 | 23 |
| Gambling | 1.13 | 8 |
| Gold | 1.59 | 37 |
| Grocery Stores | 0.52 | 9 |
| Healthcare Plans | 1.1 | 10 |
| Health Information Services | 2.4 | 39 |
| Home Improvement Retail | 0.42 | 6 |
| Household & Personal Products | 0.88 | 23 |
| Industrial Distribution | 1.37 | 18 |
| Information Technology Services | 1.41 | 46 |
| Insurance Brokers | 0.91 | 15 |
| Integrated Freight & Logistics | 1.17 | 18 |
| Internet Content & Information | 1.66 | 46 |
| Internet Retail | 1 | 27 |
| Leisure | 0.99 | 25 |
| Lodging | 0.69 | 7 |
| Luxury Goods | 0.63 | 9 |
| Marine Shipping | 1.35 | 30 |
| Medical Care Facilities | 1.11 | 38 |
| Medical Devices | 2.87 | 105 |
| Medical Distribution | 0.43 | 5 |
| Medical Instruments & Supplies | 2.92 | 44 |
| Metal Fabrication | 1.12 | 15 |
| Oil & Gas Drilling | 1.43 | 8 |
| Oil & Gas E&P | 0.83 | 61 |
| Oil & Gas Equipment & Services | 1.2 | 47 |
| Oil & Gas Integrated | 0.93 | 10 |
| Oil & Gas Midstream | 1.03 | 41 |
| Oil & Gas Refining & Marketing | 0.76 | 17 |
| Other Industrial Metals & Mining | 0.89 | 24 |
| Other Precious Metals & Mining | 2.51 | 13 |
| Packaged Foods | 0.86 | 47 |
| Packaging & Containers | 0.74 | 20 |
| Paper & Paper Products | 0.96 | 4 |
| Personal Services | 0.98 | 10 |
| Pollution & Treatment Controls | 1.69 | 14 |
| Publishing | 0.75 | 6 |
| Railroads | 0.76 | 8 |
| Real Estate Services | 1.14 | 26 |
| Recreational Vehicles | 0.68 | 10 |
| REIT – Specialty | 0.86 | 18 |
| Rental & Leasing Services | 0.6 | 18 |
| Resorts & Casinos | 0.79 | 16 |
| Restaurants | 0.72 | 43 |
| Scientific & Technical Instruments | 2.09 | 25 |
| Security & Protection Services | 1.37 | 16 |
| Semiconductor Equipment & Materials | 2.49 | 29 |
| Semiconductors | 2.07 | 64 |
| Software – Application | 1.72 | 174 |
| Software – Infrastructure | 1.34 | 124 |
| Solar | 0.97 | 17 |
| Specialty Business Services | 1.14 | 32 |
| Specialty Chemicals | 1.25 | 52 |
| Specialty Industrial Machinery | 1.17 | 68 |
| Specialty Retail | 0.5 | 33 |
| Staffing & Employment Services | 1.34 | 20 |
| Steel | 1.27 | 14 |
| Telecom Services | 0.89 | 33 |
| Thermal Coal | 1.34 | 6 |
| Tobacco | 1.03 | 7 |
| Tools & Accessories | 0.89 | 9 |
| Travel Services | 0.7 | 12 |
| Trucking | 1.28 | 15 |
| Utilities – Diversified | 0.48 | 9 |
| Utilities – Regulated Electric | 0.47 | 33 |
| Utilities – Regulated Gas | 0.43 | 15 |
| Utilities – Regulated Water | 0.68 | 12 |
| Utilities – Renewable | 0.68 | 15 |
| Waste Management | 1.07 | 14 |
Source: fullratio.com
Most Liquid Industries
A ratio well above 1.0x means a company can pay its short-term bills several times over. The top ten are below.
| Rank | Industry | Quick Ratio |
|---|---|---|
| 1 | Biotechnology | 5.13 |
| 2 | Medical Instruments & Supplies | 2.92 |
| 3 | Medical Devices | 2.87 |
| 4 | Diagnostics & Research | 2.71 |
| 5 | Other Precious Metals & Mining | 2.51 |
| 6 | Semiconductor Equipment & Materials | 2.49 |
| 7 | Drug Manufacturers – Specialty & Generic | 2.47 |
| 8 | Health Information Services | 2.4 |
| 9 | Coking Coal | 2.26 |
| 10 | Asset Management | 2.17 |
Biotechnology is also the largest group, with 446 companies. Many are pre-revenue and hold cash raised from investors, which pushes the ratio up. Cash that sits idle can also signal slow deployment, so a high figure is not automatically a strength.
Least Liquid Industries
| Rank | Industry | Quick Ratio |
|---|---|---|
| 1 | Discount Stores | 0.32 |
| 2 | Home Improvement Retail | 0.42 |
| 3 | Medical Distribution | 0.43 |
| 4 | Utilities – Regulated Gas | 0.43 |
| 5 | Utilities – Regulated Electric | 0.47 |
| 6 | Utilities – Diversified | 0.48 |
| 7 | Specialty Retail | 0.5 |
| 8 | Airlines | 0.51 |
| 9 | Grocery Stores | 0.52 |
| 10 | Auto Manufacturers | 0.54 |
These industries share one trait: steady, predictable cash inflow. A grocery chain collects payment at the register every day, so it does not need a large cash pile.
Sector Comparisons
Technology
Semiconductor equipment leads at 2.49x, followed by semiconductors at 2.07x. Application software posts 1.72x, while infrastructure software sits lower at 1.34x. IT services land at 1.41x. Chipmakers face sharp demand cycles, so they keep larger cash cushions.
Healthcare
The sector splits into two groups. Product and research businesses hold large buffers, led by medical instruments at 2.92x and devices at 2.87x. Service and distribution businesses run tighter. Medical care facilities report 1.11x, general drug manufacturers 0.85x, and medical distribution only 0.43x.
Financial Services
Asset managers post 2.17x, capital markets firms 1.55x, and credit services 1.54x. Insurance brokers sit below the line at 0.91x.
Retail and Consumer
Physical retail sits at the bottom of the table. Specialty retail reports 0.50x and apparel retail 0.56x. Internet retail reaches 1.00x, which shows how online sellers lean less on stores and stock. Luxury goods follow at 0.63x.
Energy
Energy no longer follows a simple upstream-versus-downstream split. Drilling leads at 1.43x, then equipment and services at 1.20x, midstream at 1.03x, and integrated majors at 0.93x. Exploration and production fall to 0.83x, and refining to 0.76x.
Metals and Mining
Miners carry strong buffers because commodity prices swing. Other precious metals report 2.51x, coking coal 2.26x, and copper 2.01x. Steel at 1.27x and aluminum at 1.01x run close to the median.
Utilities and Transportation
Regulators approve rates, so utility cash flow is predictable. Gas utilities report 0.43x, electric 0.47x, and water 0.68x. Transport varies widely. Airlines post 0.51x, railroads 0.76x, trucking 1.28x, and marine shipping 1.35x.
How to Use These Benchmarks
- Match your peer group. Compare your ratio to your own industry, not the overall median.
- Track the trend. A falling ratio over four quarters says more than one low reading.
- Check the quality of receivables. Overdue invoices inflate the numerator.
Example: A restaurant group reports 0.75x. The industry figure is 0.72x, so it is in line with peers. A software company at the same 0.75x sits far below the 1.72x application software average and should review its cash planning.
FAQs
Not sure how to read your quick ratio? These quick answers cover what the number means, which industries sit at the top and bottom, and when a low ratio is nothing to worry about.
A ratio of 1.0x or higher usually means a company can cover short-term debts without selling inventory. The median industry sits at 1.07x.
No. Grocery stores (0.52x) and electric utilities (0.47x) operate safely below 1.0x because their cash inflow is steady. Warning signs appear when a ratio sits below its industry norm and keeps falling.
The current ratio counts inventory and prepaid items. The quick ratio removes them and keeps only cash, securities, and receivables, which makes it the stricter test.
There are four main levers. Collect receivables faster, build a larger cash reserve, negotiate longer payment terms with suppliers, and pay down short-term debt. For example, a company with $400,000 in quick assets and $500,000 in current liabilities has a ratio of 0.8x. If it collects $100,000 of overdue invoices and uses it to clear short-term debt, the ratio rises to 1.0x ($400,000 of quick assets against $400,000 of liabilities).
Yes, but read it with care. Early-stage companies often have little revenue and few receivables, so the ratio mostly reflects cash raised from investors. Pair it with a cash runway, which tells you how many months the company can operate before it needs new funding.
Turning Industry Data Into Smarter Decisions
Liquidity depends on the business model. Innovation-led sectors such as biotech, medical devices, and semiconductors hold deep cash buffers, while retail, utilities, and airlines run lean on predictable revenue. Use the 2026 industry data to judge a company against its true peers, then read the ratio next to cash flow and debt. If you want expert help turning these benchmarks into decisions, Eqvista supports startups with everything from financial modeling to company valuation.
