BAE SystemsBAESY -1.17%86 Quick Ratio is 0.87 as of Dec. 2025, which is 5% below its 10-year median of 0.92. GuruFocus rates BAESY with a GF Score™ of 86/100 and a GF Value™ of $88.08 (Fairly Valued). The stock has 2 warning signs investors should review. Among 357 Aerospace & Defense companies, BAE Systems ranks worse than 75.07% 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. BAE Systems's quick ratio for the quarter that ended in Dec. 2025 was 0.87.
BAE Systems has a quick ratio of 0.87. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for BAE Systems's Quick Ratio or its related term are showing as below:
BAESY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.85 Med: 0.92 Max: 1.01
Current: 0.87
During the past 13 years, BAE Systems's highest Quick Ratio was 1.01. The lowest was 0.85. And the median was 0.92.
BAESY's Quick Ratio is ranked worse than 75.07% of 357
companies
in the Aerospace & Defense industry
Industry Median: 1.3
vs BAESY: 0.87
BAE Systems (OTCPK:BAESY) 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.
BAE Systems Quick Ratio Related Terms
BAE Systems Quick Ratio Historical Data
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The historical data trend for BAE Systems'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 Aerospace & Defense subindustry, BAE Systems'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.
BAE Systems Quick Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where BAE Systems'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.
BAE Systems's Quick Ratio for the fiscal year that ended in Dec. 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.
BAE Systems (BAESY) has a Quick Ratio of 0.87 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on BAE Systems and its competitors. This is near median its historical median of 0.92. Over the past decade, BAE Systems' Quick Ratio has ranged from 0.85 to 1.01. According to the industry distribution chart, BAE Systems ranks #268 out of 357 companies in the Aerospace & Defense industry, placing it in the top 75.1%.
Is BAE Systems' Quick Ratio too high?
BAE Systems' current Quick Ratio of 0.87 is near median its 10-year median of 0.92. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 1.01. The Aerospace & Defense industry median Quick Ratio is 1.30. BAE Systems' value of 0.87 is 33.1% below this industry median. Based on the distribution chart, BAE Systems ranks #268 out of 357 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, BAE Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Quick Ratio compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #268 out of 357 companies for Quick Ratio. This places BAE Systems in the lower half of its industry. The industry median Quick Ratio is 1.30. BAE Systems' value of 0.87 is 33.1% below this benchmark. Historically, BAE Systems' own Quick Ratio has ranged from 0.85 to 1.01 over the past decade. While the company's 10-year median is 0.92 vs. the industry median of 1.30, BAE Systems has consistently been below 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 an Aerospace & Defense company?
The median Quick Ratio among Aerospace & Defense companies is 1.30, based on 357 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. BAE Systems's current Quick Ratio of 0.87 is 33.1% below 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 BAE Systems and its competitors. For the Aerospace & Defense industry, the median Quick Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Quick Ratio is 0.87, which is near median its own 10-year median of 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $88.08, compared to a current price of $94.48 — trading 7.3% above its estimated fair value. The current Quick Ratio is 0.87, which is near median its 10-year median of 0.92 and 33.1% below the Aerospace & Defense industry median of 1.30. BAE Systems' overall GF Score™ is 86/100 with 2 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 BAE Systems (BAESY), the current Quick Ratio is 0.87 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 BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $94.48 is trading 7.3% above its estimated GF Value™ of $88.08.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
Quick Ratio: 0.87 (near median its 10-year median of 0.92)
GF Value™: $88.08 vs. price of $94.48 (7.3% above fair value)
Industry Position: 33.1% below the Aerospace & Defense median (#268 of 357)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
86GF Score
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