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First AdvantageFA +3.20%60 Quick Ratio is 2.53 as of Jun. 2026, which is 36% below its 10-year median of 3.95. GuruFocus rates FA with a GF Score™ of 60/100 and a GF Value™ of $25.33 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,091 Business Services companies, First Advantage ranks better than 71.4% 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. First Advantage's quick ratio for the quarter that ended in Jun. 2026 was 2.53.
First Advantage has a quick ratio of 2.53. It generally indicates good short-term financial strength.
The historical rank and industry rank for First Advantage's Quick Ratio or its related term are showing as below:
FA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.9 Med: 3.95 Max: 6.54
Current: 2.53
During the past 13 years, First Advantage's highest Quick Ratio was 6.54. The lowest was 1.90. And the median was 3.95.
FA's Quick Ratio is ranked better than 71.4% of 1091
companies
in the Business Services industry
Industry Median: 1.65
vs FA: 2.53
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.
First Advantage Quick Ratio Related Terms
First Advantage Quick Ratio Historical Data
* Premium members only.
The historical data trend for First Advantage'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 Specialty Business Services subindustry, First Advantage'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.
First Advantage Quick Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, First Advantage's Quick Ratio distribution charts can be found below:
* The bar in red indicates where First Advantage'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.
First Advantage'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.
First Advantage (FA) has a Quick Ratio of 2.53 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on First Advantage and its competitors. This is 36% below median its historical median of 3.95. Over the past decade, First Advantage's Quick Ratio has ranged from 1.90 to 6.54. According to the industry distribution chart, First Advantage ranks #312 out of 1091 companies in the Business Services industry, placing it in the top 28.6%.
Is First Advantage's Quick Ratio too high?
First Advantage's current Quick Ratio of 2.53 is 36% below median its 10-year median of 3.95. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 6.54. The Business Services industry median Quick Ratio is 1.65. First Advantage's value of 2.53 is 53.3% above this industry median. Based on the distribution chart, First Advantage ranks #312 out of 1091 companies in the Business Services industry, which is above the industry midpoint. Overall, First Advantage has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Advantage's Quick Ratio compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #312 out of 1091 companies for Quick Ratio. This puts First Advantage in the upper half of its industry. The industry median Quick Ratio is 1.65. First Advantage's value of 2.53 is 53.3% above this benchmark. Historically, First Advantage's own Quick Ratio has ranged from 1.90 to 6.54 over the past decade. While the company's 10-year median is 3.95 vs. the industry median of 1.65, First Advantage 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 Business Services company?
The median Quick Ratio among Business Services companies is 1.65, based on 1,091 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. First Advantage's current Quick Ratio of 2.53 is 53.3% 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 First Advantage and its competitors. For the Business Services industry, the median Quick Ratio is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current Quick Ratio is 2.53, which is 36% below median its own 10-year median of 3.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Advantage stock overvalued right now?
Based on GuruFocus' analysis, First Advantage (FA) is currently considered Modestly Undervalued. The stock's GF Value™ is $25.33, compared to a current price of $20.97 — trading 17.2% below its estimated fair value. The current Quick Ratio is 2.53, which is 36% below median its 10-year median of 3.95 and 53.3% above the Business Services industry median of 1.65. First Advantage's overall GF Score™ is 60/100 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 First Advantage (FA), the current Quick Ratio is 2.53 as of Jun. 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 First Advantage (FA) Overvalued in 2026?
Based on GuruFocus' analysis, First Advantage stock appears to be undervalued.
The current stock price of $20.97 is trading 17.2% below its estimated GF Value™ of $25.33.
GuruFocus considers First Advantage to be Modestly Undervalued.
Key valuation signals for FA:
Quick Ratio: 2.53 (36% below median its 10-year median of 3.95)
GF Value™: $25.33 vs. price of $20.97 (17.2% below fair value)
Industry Position: 53.3% above the Business Services median (#312 of 1091)
No single metric tells the full story. See the FA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Advantage Corp is a provider of software and data in the Human Resources technology industry. The company provides end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. It combines AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data. Its reportable segments are First Advantage Americas, First Advantage International, and Sterling. The company generates maximum revenue from the Sterling segment, which provides similar services as compared to First Advantage's Americas and International segments on a global basis. Geographically, the company generates the majority of its revenue from the United States.
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