The a2 Milk CoASX:A2M +1.03%83 Quick Ratio is 2.56 as of Dec. 2025, which is 4% below its 10-year median of 2.66. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.68 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,987 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 80.62% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. The a2 Milk Co's quick ratio for the quarter that ended in Dec. 2025 was 2.56.
The a2 Milk Co has a quick ratio of 2.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for The a2 Milk Co's Quick Ratio or its related term are showing as below:
ASX:A2M'
s Quick Ratio Range Over the Past 10 Years
Min: 1.69 Med: 2.66 Max: 4.48
Current: 2.56
During the past 13 years, The a2 Milk Co's highest Quick Ratio was 4.48. The lowest was 1.69. And the median was 2.66.
ASX:A2M's Quick Ratio is ranked better than 80.62% of 1987
companies
in the Consumer Packaged Goods industry
Industry Median: 1.12
vs ASX:A2M: 2.56
The a2 Milk Co (ASX:A2M) 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.
The a2 Milk Co Quick Ratio Related Terms
The a2 Milk Co Quick Ratio Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's Quick Ratio can be seen below:
* 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 Packaged Foods subindustry, The a2 Milk Co'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.
The a2 Milk Co Quick Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Quick Ratio falls into.
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.
The a2 Milk Co's Quick Ratio for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
The a2 Milk Co (ASX:A2M) has a Quick Ratio of 2.56 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on The a2 Milk Co and its competitors. This is near median its historical median of 2.66. Over the past decade, The a2 Milk Co's Quick Ratio has ranged from 1.69 to 4.48. According to the industry distribution chart, The a2 Milk Co ranks #385 out of 1987 companies in the Consumer Packaged Goods industry, placing it in the top 19.4%.
Is The a2 Milk Co's Quick Ratio too high?
The a2 Milk Co's current Quick Ratio of 2.56 is near median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.69 to a high of 4.48. The Consumer Packaged Goods industry median Quick Ratio is 1.12. The a2 Milk Co's value of 2.56 is 128.6% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #385 out of 1987 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, The a2 Milk Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Quick Ratio compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #385 out of 1987 companies for Quick Ratio. This places The a2 Milk Co in the top 19% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.12. The a2 Milk Co's value of 2.56 is 128.6% above this benchmark. Historically, The a2 Milk Co's own Quick Ratio has ranged from 1.69 to 4.48 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 1.12, The a2 Milk Co 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 Consumer Packaged Goods company?
The median Quick Ratio among Consumer Packaged Goods companies is 1.12, based on 1,987 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. The a2 Milk Co's current Quick Ratio of 2.56 is 128.6% 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 The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Quick Ratio is 2.56, which is near median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ASX:A2M) is currently considered Fairly Valued. The stock's GF Value™ is A$6.68, compared to a current price of A$6.85 — trading 2.5% above its estimated fair value. The current Quick Ratio is 2.56, which is near median its 10-year median of 2.66 and 128.6% above the Consumer Packaged Goods industry median of 1.12. The a2 Milk Co's overall GF Score™ is 83/100 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 The a2 Milk Co (ASX:A2M), the current Quick Ratio is 2.56 as of Dec. 2025. 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 The a2 Milk Co (ASX:A2M) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of A$6.85 is trading 2.5% above its estimated GF Value™ of A$6.68.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
Quick Ratio: 2.56 (near median its 10-year median of 2.66)
GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
Industry Position: 128.6% above the Consumer Packaged Goods median (#385 of 1987)
No single metric tells the full story. See the ASX:A2M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
83GF Score
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