Volvo ABVOLAF -1.64%92 Quick Ratio is 0.91 as of Mar. 2026, which is at its 10-year median of 0.91. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 66.82% 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. Volvo AB's quick ratio for the quarter that ended in Mar. 2026 was 0.91.
Volvo AB has a quick ratio of 0.91. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Volvo AB's Quick Ratio or its related term are showing as below:
VOLAF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.72 Med: 0.91 Max: 1.16
Current: 0.91
During the past 13 years, Volvo AB's highest Quick Ratio was 1.16. The lowest was 0.72. And the median was 0.91.
VOLAF's Quick Ratio is ranked worse than 66.82% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.17
vs VOLAF: 0.91
Volvo AB (OTCPK:VOLAF) 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.
Volvo AB Quick Ratio Related Terms
Volvo AB Quick Ratio Historical Data
* Premium members only.
The historical data trend for Volvo AB'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 Farm & Heavy Construction Machinery subindustry, Volvo AB'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.
Volvo AB Quick Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Volvo AB'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.
Volvo AB'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.
Volvo AB (VOLAF) has a Quick Ratio of 0.91 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Volvo AB and its competitors. This is near median its historical median of 0.91. Over the past decade, Volvo AB's Quick Ratio has ranged from 0.72 to 1.16. According to the industry distribution chart, Volvo AB ranks #141 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 66.8%.
Is Volvo AB's Quick Ratio too high?
Volvo AB's current Quick Ratio of 0.91 is near median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 1.16. The Farm & Heavy Construction Machinery industry median Quick Ratio is 1.17. Volvo AB's value of 0.91 is 22.2% below this industry median. Based on the distribution chart, Volvo AB ranks #141 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Quick Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #141 out of 211 companies for Quick Ratio. This places Volvo AB in the lower half of its industry. The industry median Quick Ratio is 1.17. Volvo AB's value of 0.91 is 22.2% below this benchmark. Historically, Volvo AB's own Quick Ratio has ranged from 0.72 to 1.16 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 1.17, Volvo AB 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 Farm & Heavy Construction Machinery company?
The median Quick Ratio among Farm & Heavy Construction Machinery companies is 1.17, based on 211 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. Volvo AB's current Quick Ratio of 0.91 is 22.2% 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 Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Quick Ratio is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Quick Ratio is 0.91, which is near median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Quick Ratio is 0.91, which is near median its 10-year median of 0.91 and 22.2% below the Farm & Heavy Construction Machinery industry median of 1.17. Volvo AB's overall GF Score™ is 92/100 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 Volvo AB (VOLAF), the current Quick Ratio is 0.91 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Quick Ratio: 0.91 (near median its 10-year median of 0.91)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 22.2% below the Farm & Heavy Construction Machinery median (#141 of 211)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score
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