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Federated HermesFHI -0.06%98 Quick Ratio is 2.59 as of Jun. 2026, which is 4% below its 10-year median of 2.70. GuruFocus rates FHI with a GF Score™ of 98/100 and a GF Value™ of $53.33 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 714 Asset Management companies, Federated Hermes ranks worse than 51.4% on this metric.
Federated Hermes (NYSE:FHI) 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.
Federated Hermes Quick Ratio Related Terms
Federated Hermes Quick Ratio Historical Data
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The historical data trend for Federated Hermes'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 Asset Management subindustry, Federated Hermes'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.
Federated Hermes Quick Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Federated Hermes'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.
Federated Hermes'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.
Federated Hermes (FHI) has a Quick Ratio of 2.59 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Federated Hermes and its competitors. This is near median its historical median of 2.70. Over the past decade, Federated Hermes' Quick Ratio has ranged from 1.65 to 4.43. According to the industry distribution chart, Federated Hermes ranks #367 out of 714 companies in the Asset Management industry, placing it in the top 51.4%.
Is Federated Hermes' Quick Ratio too high?
Federated Hermes' current Quick Ratio of 2.59 is near median its 10-year median of 2.70. Over the past 10 years, this metric has ranged from a low of 1.65 to a high of 4.43. The Asset Management industry median Quick Ratio is 2.83. Federated Hermes' value of 2.59 is 8.5% below this industry median. Based on the distribution chart, Federated Hermes ranks #367 out of 714 companies in the Asset Management industry, which is below the industry midpoint. Overall, Federated Hermes has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Quick Ratio compare to OTF and DNP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #367 out of 714 companies for Quick Ratio. This places Federated Hermes in the lower half of its industry. The industry median Quick Ratio is 2.83. Federated Hermes' value of 2.59 is 8.5% below this benchmark. Historically, Federated Hermes' own Quick Ratio has ranged from 1.65 to 4.43 over the past decade. While the company's 10-year median is 2.70 vs. the industry median of 2.83, Federated Hermes 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 Asset Management company?
The median Quick Ratio among Asset Management companies is 2.83, based on 714 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. Federated Hermes's current Quick Ratio of 2.59 is 8.5% 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 Federated Hermes and its competitors. For the Asset Management industry, the median Quick Ratio is 2.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Quick Ratio is 2.59, which is near median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Based on GuruFocus' analysis, Federated Hermes (FHI) is currently considered Modestly Overvalued. The stock's GF Value™ is $53.33, compared to a current price of $63.51 — trading 19.1% above its estimated fair value. The current Quick Ratio is 2.59, which is near median its 10-year median of 2.70 and 8.5% below the Asset Management industry median of 2.83. Federated Hermes' overall GF Score™ is 98/100 with 6 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 Federated Hermes (FHI), the current Quick Ratio is 2.59 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 Federated Hermes (FHI) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of $63.51 is trading 19.1% above its estimated GF Value™ of $53.33.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
Quick Ratio: 2.59 (near median its 10-year median of 2.70)
GF Value™: $53.33 vs. price of $63.51 (19.1% above fair value)
Industry Position: 8.5% below the Asset Management median (#367 of 714)
No single metric tells the full story. See the FHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
98GF Score
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