LPL Financial HoldingsLPLA -3.41%86 Quick Ratio is 2.41 as of Mar. 2026, which is 55% above its 10-year median of 1.55. GuruFocus rates LPLA with a GF Score™ of 86/100 and a GF Value™ of $461.58 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 687 Capital Markets companies, LPL Financial Holdings ranks better than 53.57% on this metric.
LPL Financial Holdings has a quick ratio of 2.41. It generally indicates good short-term financial strength.
The historical rank and industry rank for LPL Financial Holdings's Quick Ratio or its related term are showing as below:
LPLA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.26 Med: 1.55 Max: 3.03
Current: 2.41
During the past 13 years, LPL Financial Holdings's highest Quick Ratio was 3.03. The lowest was 1.26. And the median was 1.55.
LPLA's Quick Ratio is ranked better than 53.57% of 687
companies
in the Capital Markets industry
Industry Median: 2.1
vs LPLA: 2.41
LPL Financial Holdings (NAS:LPLA) 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.
LPL Financial Holdings Quick Ratio Related Terms
LPL Financial 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 Capital Markets subindustry, LPL Financial 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.
LPL Financial Holdings Quick Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings'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.
LPL Financial Holdings'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.
LPL Financial Holdings (LPLA) has a Quick Ratio of 2.41 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on LPL Financial Holdings and its competitors. This is 55% above median its historical median of 1.55. Over the past decade, LPL Financial Holdings' Quick Ratio has ranged from 1.26 to 3.03. According to the industry distribution chart, LPL Financial Holdings ranks #319 out of 687 companies in the Capital Markets industry, placing it in the top 46.4%.
Is LPL Financial Holdings' Quick Ratio too high?
LPL Financial Holdings' current Quick Ratio of 2.41 is 55% above median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 3.03. The Capital Markets industry median Quick Ratio is 2.10. LPL Financial Holdings' value of 2.41 is 14.8% above this industry median. Based on the distribution chart, LPL Financial Holdings ranks #319 out of 687 companies in the Capital Markets industry, which is above the industry midpoint. Overall, LPL Financial Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Quick Ratio compare to TW and IREN?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #319 out of 687 companies for Quick Ratio. This puts LPL Financial Holdings in the upper half of its industry. The industry median Quick Ratio is 2.10. LPL Financial Holdings' value of 2.41 is 14.8% above this benchmark. Historically, LPL Financial Holdings' own Quick Ratio has ranged from 1.26 to 3.03 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 2.10, LPL Financial 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 Capital Markets company?
The median Quick Ratio among Capital Markets companies is 2.10, based on 687 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. LPL Financial Holdings's current Quick Ratio of 2.41 is 14.8% 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 LPL Financial Holdings and its competitors. For the Capital Markets industry, the median Quick Ratio is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Quick Ratio is 2.41, which is 55% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $461.58, compared to a current price of $272.52 — trading 41% below its estimated fair value. The current Quick Ratio is 2.41, which is 55% above median its 10-year median of 1.55 and 14.8% above the Capital Markets industry median of 2.10. LPL Financial Holdings' overall GF Score™ is 86/100 with 4 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 LPL Financial Holdings (LPLA), the current Quick Ratio is 2.41 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $272.52 is trading 41% below its estimated GF Value™ of $461.58.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
Quick Ratio: 2.41 (55% above median its 10-year median of 1.55)
GF Value™: $461.58 vs. price of $272.52 (41% below fair value)
Industry Position: 14.8% above the Capital Markets median (#319 of 687)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
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