What is Allison Transmission Holdings Quick Ratio?
Allison Transmission HoldingsALSN +2.29%95 Quick Ratio is 1.18 as of Mar. 2026, which is 12% below its 10-year median of 1.34. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $124.08 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,337 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 56.84% on this metric.
Allison Transmission Holdings has a quick ratio of 1.18. It generally indicates good short-term financial strength.
The historical rank and industry rank for Allison Transmission Holdings's Quick Ratio or its related term are showing as below:
ALSN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.96 Med: 1.34 Max: 4.17
Current: 1.18
During the past 13 years, Allison Transmission Holdings's highest Quick Ratio was 4.17. The lowest was 0.96. And the median was 1.34.
ALSN's Quick Ratio is ranked better than 56.84% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.06
vs ALSN: 1.18
Allison Transmission Holdings (NYSE:ALSN) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Allison Transmission Holdings Quick Ratio Related Terms
Allison Transmission Holdings Quick Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Allison Transmission Holdings's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allison Transmission Holdings Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Quick Ratio falls into.
Allison Transmission Holdings Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Allison Transmission Holdings (ALSN) has a Quick Ratio of 1.18 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Allison Transmission Holdings and its competitors. This is 12% below median its historical median of 1.34. Over the past decade, Allison Transmission Holdings' Quick Ratio has ranged from 0.96 to 4.17. According to the industry distribution chart, Allison Transmission Holdings ranks #577 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 43.2%.
Is Allison Transmission Holdings' Quick Ratio too high?
Allison Transmission Holdings' current Quick Ratio of 1.18 is 12% below median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 4.17. The Vehicles & Parts industry median Quick Ratio is 1.06. Allison Transmission Holdings' value of 1.18 is 11.3% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #577 out of 1337 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Allison Transmission Holdings has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' Quick Ratio compare to ALV and MBLY?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #577 out of 1337 companies for Quick Ratio. This puts Allison Transmission Holdings in the upper half of its industry. The industry median Quick Ratio is 1.06. Allison Transmission Holdings' value of 1.18 is 11.3% above this benchmark. Historically, Allison Transmission Holdings' own Quick Ratio has ranged from 0.96 to 4.17 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 1.06, Allison Transmission Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.06, based on 1,337 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current Quick Ratio of 1.18 is 11.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current Quick Ratio is 1.18, which is 12% below median its own 10-year median of 1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Fairly Valued. The stock's GF Value™ is $124.08, compared to a current price of $119.68 — trading 3.5% below its estimated fair value. The current Quick Ratio is 1.18, which is 12% below median its 10-year median of 1.34 and 11.3% above the Vehicles & Parts industry median of 1.06. Allison Transmission Holdings' overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Quick Ratio is 1.18 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allison Transmission Holdings (ALSN) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued.
The current stock price of $119.68 is trading 3.5% below its estimated GF Value™ of $124.08.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
Quick Ratio: 1.18 (12% below median its 10-year median of 1.34)
GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
Industry Position: 11.3% above the Vehicles & Parts median (#577 of 1337)
No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
95GF Score
Get the complete analysis for ALSN
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ALSN has been successfully added to your 
