Rackspace TechnologyRXT -6.00%47 Quick Ratio is 0.68 as of Mar. 2026, which is 33% below its 10-year median of 1.02. GuruFocus rates RXT with a GF Score™ of 47/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,863 Software companies, Rackspace Technology ranks worse than 87.36% on this metric.
Rackspace Technology has a quick ratio of 0.68. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Rackspace Technology's Quick Ratio or its related term are showing as below:
RXT'
s Quick Ratio Range Over the Past 10 Years
Min: 0.68 Med: 1.02 Max: 1.25
Current: 0.68
During the past 9 years, Rackspace Technology's highest Quick Ratio was 1.25. The lowest was 0.68. And the median was 1.02.
RXT's Quick Ratio is ranked worse than 87.36% of 2863
companies
in the Software industry
Industry Median: 1.7
vs RXT: 0.68
Rackspace Technology (NAS:RXT) 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.
Rackspace Technology Quick Ratio Related Terms
Rackspace Technology Quick Ratio Historical Data
* Premium members only.
The historical data trend for Rackspace Technology'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 Software - Infrastructure subindustry, Rackspace Technology'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.
Rackspace Technology Quick Ratio vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rackspace Technology'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.
Rackspace Technology'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.
Rackspace Technology (RXT) has a Quick Ratio of 0.68 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Rackspace Technology and its competitors. This is 33% below median its historical median of 1.02. Over the past decade, Rackspace Technology's Quick Ratio has ranged from 0.68 to 1.25. According to the industry distribution chart, Rackspace Technology ranks #2501 out of 2863 companies in the Software industry, placing it in the top 87.4%.
Is Rackspace Technology's Quick Ratio too high?
Rackspace Technology's current Quick Ratio of 0.68 is 33% below median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 1.25. The Software industry median Quick Ratio is 1.70. Rackspace Technology's value of 0.68 is 60% below this industry median. Based on the distribution chart, Rackspace Technology ranks #2501 out of 2863 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Rackspace Technology has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Quick Ratio compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #2501 out of 2863 companies for Quick Ratio. This places Rackspace Technology in the lower half of its industry. The industry median Quick Ratio is 1.70. Rackspace Technology's value of 0.68 is 60% below this benchmark. Historically, Rackspace Technology's own Quick Ratio has ranged from 0.68 to 1.25 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 1.70, Rackspace Technology 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 a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,863 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. Rackspace Technology's current Quick Ratio of 0.68 is 60% 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 Rackspace Technology and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current Quick Ratio is 0.68, which is 33% below median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Based on GuruFocus' analysis, Rackspace Technology (RXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.42, compared to a current price of $6.82 — trading 380.3% above its estimated fair value. The current Quick Ratio is 0.68, which is 33% below median its 10-year median of 1.02 and 60% below the Software industry median of 1.70. Rackspace Technology's overall GF Score™ is 47/100 with 7 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 Rackspace Technology (RXT), the current Quick Ratio is 0.68 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 Rackspace Technology (RXT) Overvalued in 2026?
Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued.
The current stock price of $6.82 is trading 380.3% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
Quick Ratio: 0.68 (33% below median its 10-year median of 1.02)
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
Industry Position: 60% below the Software median (#2501 of 2863)
No single metric tells the full story. See the RXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
47GF Score
Get the complete analysis for RXT
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RXT has been successfully added to your 
