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. Rivian Automotive's quick ratio for the quarter that ended in Mar. 2022 was 10.86.
Rivian Automotive has a quick ratio of 10.86. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rivian Automotive's Quick Ratio or its related term are showing as below:
RIVN'
s Quick Ratio Range Over the Past 10 Years
Min: 4.71 Med: 7.92 Max: 13.93
Current: 10.86
During the past 3 years, Rivian Automotive's highest Quick Ratio was 13.93. The lowest was 4.71. And the median was 7.92.
RIVN's Quick Ratio is ranked better than 97.09% of 1238
companies
in the Vehicles & Parts industry
Industry Median: 1.07
vs RIVN: 10.86
Rivian Automotive Quick Ratio Historical Data
The historical data trend for Rivian 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.
* Premium members only.
Rivian Automotive Annual Data
Trend
Dec19
Dec20
Dec21
Quick Ratio
12.39
4.94
13.93
Rivian Automotive Quarterly Data
Dec19
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Quick Ratio
-
4.71
4.98
13.93
10.86
Competitive Comparison
For the Auto Manufacturers subindustry, Rivian 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.
Rivian Automotive Quick Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rivian Automotive's Quick Ratio falls into.
Rivian Automotive Quick Ratio Calculation
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.
Rivian Automotive's Quick Ratio for the fiscal year that ended in Dec. 2021 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.
Rivian Automotive (NAS:RIVN) 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.
Rivian Automotive Quick Ratio Related Terms
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