Walmart, Inc. and Costco Wholesale Corporation’s quick ratios seem to be much lower than the industry average. For example, Walmart, Inc.’s quick ratio for 2016 was .24. This means that for every dollar of current liabilities, Walmart Inc. has 24 cents of liquid assets available. This clearly is not a strong ratio. Costco’s ratios are a bit higher than Walmart’s, but still not high enough to cover their current liabilities. The higher the quick ratio, the better the company’s liquidity position.
