REE AutomotiveREE +3.98%37 Quick Ratio is 1.18 as of Dec. 2025, which is 78% below its 10-year median of 5.46. GuruFocus rates REE with a GF Score™ of 37/100 and a GF Value™ of $2.75 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,337 Vehicles & Parts companies, REE Automotive ranks better than 56.84% 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. REE Automotive's quick ratio for the quarter that ended in Dec. 2025 was 1.18.
REE Automotive has a quick ratio of 1.18. It generally indicates good short-term financial strength.
The historical rank and industry rank for REE Automotive's Quick Ratio or its related term are showing as below:
REE'
s Quick Ratio Range Over the Past 10 Years
Min: 1.18 Med: 5.46 Max: 14.75
Current: 1.18
During the past 7 years, REE Automotive's highest Quick Ratio was 14.75. The lowest was 1.18. And the median was 5.46.
REE's Quick Ratio is ranked better than 56.84% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.06
vs REE: 1.18
REE Automotive (NAS:REE) 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.
REE Automotive Quick Ratio Related Terms
REE Automotive Quick Ratio Historical Data
* Premium members only.
The historical data trend for REE Automotive'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 Auto Parts subindustry, REE Automotive'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.
REE Automotive Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's Quick Ratio distribution charts can be found below:
* The bar in red indicates where REE Automotive'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.
REE Automotive'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.
REE Automotive (REE) has a Quick Ratio of 1.18 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on REE Automotive and its competitors. This is 78% below median its historical median of 5.46. Over the past decade, REE Automotive's Quick Ratio has ranged from 1.18 to 14.75. According to the industry distribution chart, REE Automotive ranks #577 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 43.2%.
Is REE Automotive's Quick Ratio too high?
REE Automotive's current Quick Ratio of 1.18 is 78% below median its 10-year median of 5.46. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 14.75. The Vehicles & Parts industry median Quick Ratio is 1.06. REE Automotive's value of 1.18 is 11.3% above this industry median. Based on the distribution chart, REE Automotive ranks #577 out of 1337 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, REE Automotive has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does REE Automotive's Quick Ratio compare to INEO and WKSP?
According to the Vehicles & Parts industry distribution chart, REE Automotive ranks #577 out of 1337 companies for Quick Ratio. This puts REE Automotive in the upper half of its industry. The industry median Quick Ratio is 1.06. REE Automotive's value of 1.18 is 11.3% above this benchmark. Historically, REE Automotive's own Quick Ratio has ranged from 1.18 to 14.75 over the past decade. While the company's 10-year median is 5.46 vs. the industry median of 1.06, REE Automotive 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 Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.06, based on 1,337 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. REE Automotive's current Quick Ratio of 1.18 is 11.3% 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 REE Automotive and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REE Automotive's current Quick Ratio is 1.18, which is 78% below median its own 10-year median of 5.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REE) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.22 — trading 91.9% below its estimated fair value. The current Quick Ratio is 1.18, which is 78% below median its 10-year median of 5.46 and 11.3% above the Vehicles & Parts industry median of 1.06. REE Automotive's overall GF Score™ is 37/100 with 8 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 REE Automotive (REE), the current Quick Ratio is 1.18 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 REE Automotive (REE) Overvalued in 2026?
Based on GuruFocus' analysis, REE Automotive stock appears to be undervalued.
The current stock price of $0.22 is trading 91.9% below its estimated GF Value™ of $2.75.
GuruFocus considers REE Automotive to be Possible Value Trap.
Key valuation signals for REE:
Quick Ratio: 1.18 (78% below median its 10-year median of 5.46)
GF Value™: $2.75 vs. price of $0.22 (91.9% below fair value)
Industry Position: 11.3% above the Vehicles & Parts median (#577 of 1337)
No single metric tells the full story. See the REE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.
37GF Score
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