---
title: Measuring Liquidity Risk with the Quick Ratio Metric
description: Analyzing Q3 2026 filings reveals how cash reserves of 0.39 billion VND alongside overdue debt of 734 billion VND signal acute corporate liquidity distress.
url: https://ginity.vn/en/blog/understanding-quick-ratio-and-liquidity-risk
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language: en
datePublished: 2026-11-01T00:00:00+07:00
dateModified: 2026-11-01T00:00:00+07:00
author:
  name: Gini
  url: https://ginity.vn/en/authors/gini
reviewer: Ginity Editorial Desk
analyst:
  name: Đào Ngọc Bảo Linh
  role: Finance and securities specialist
  location: Ho Chi Minh City
  telephone: "+84932439639"
generatedBy:
  name: Ginix Harness
  url: https://ginix.vn
desk:
  id: equity
  name: Companies & sectors
  url: https://ginity.vn/en/topics/equity
tickers:
  - LDG
sources: []
publisher: Ginity
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disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources."
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---

# Measuring Liquidity Risk with the Quick Ratio Metric

> Analyzing Q3 2026 filings reveals how cash reserves of 0.39 billion VND alongside overdue debt of 734 billion VND signal acute corporate liquidity distress.

Gini · Companies & sectors · 2026-11-01 · https://ginity.vn/en/blog/understanding-quick-ratio-and-liquidity-risk

_Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_

## Key takeaways

- Corporate cash holdings compressed to 0.39 billion VND as of September 30, 2026.
- Overdue short-term borrowing balances escalated to 734.34 billion VND as of September 30, 2026.
- Impaired short-term receivables expanded to 1,667.0 billion VND, with recoverable amounts estimated at 822.8 billion VND.
- Cumulative 9-month net losses reached 1,368.3 billion VND in 2026, eroding 53.25% of chartered equity capital.

In fundamental equity research, headline asset values recorded on corporate balance sheets frequently obscure severe underlying deterioration in operational solvency. According to third-quarter consolidated financial statement disclosures analyzed in detail by [Tin nhanh Chung khoan on November 1, 2026](https://www.tinnhanhchungkhoan.vn/dau-tu-ldg-chi-con-039-ty-dong-tien-mat-trong-khi-phat-sinh-no-qua-han-chua-thanh-toan-73434-ty-dong-post400577.html), LDG Investment JSC reported nominal total assets of 8,018.2 billion VND as of September 30, 2026, while liquid cash and cash equivalents stood at merely 0.39 billion VND (equivalent to 390 million VND).

Evaluating the divergence between reported accounting assets and immediately spendable funds represents a fundamental pillar of corporate credit examination. When cash cushions evaporate while short-term liability deadlines advance, enterprises face immediate operational bottlenecks that can derail corporate viability regardless of aggregate balance sheet dimensions.

## Dissecting overdue obligations and short-term asset quality

According to financial figures reported by [Tin nhanh Chung khoan on November 1, 2026](https://www.tinnhanhchungkhoan.vn/dau-tu-ldg-chi-con-039-ty-dong-tien-mat-trong-khi-phat-sinh-no-qua-han-chua-thanh-toan-73434-ty-dong-post400577.html), as of September 30, 2026, the company accumulated overdue short-term bank borrowings and bond liabilities totaling 734.34 billion VND. Simultaneously, gross impaired short-term receivables surged to 1,667.0 billion VND as of September 30, 2026, while estimated recoverable value was assessed at only 822.8 billion VND. Contractual overdue obligations require prompt cash settlement, rendering theoretical accounting assets ineffective for meeting immediate legal covenants.

When cash reserves decline toward near-zero thresholds against overdue short-term debt running in the hundreds of billions of VND, instant liquidity coverage ratios drop to severe warning levels:

$$\text{Cash Ratio} = \frac{\text{Cash and Equivalents}}{\text{Overdue Short-Term Debt}} = \frac{0.39}{734.34} \approx 0.0005$$

$$\text{Quick Ratio} = \frac{\text{Cash} + \text{Recoverable Receivables}}{\text{Overdue Short-Term Debt}} = \frac{0.39 + 822.8}{734.34} \approx 1.12$$

> Chart: Cash reserves versus overdue debt obligations as of September 30, 2026. billion VND. Cash Reserves: 0.39; Overdue Debt: 734.34; Bad Receivables: 1,667.00; Retained Losses: 1,368.30.

According to industry-wide assessments published by [Vietstock in 2026](https://vietstock.vn/2026/02/ton-kho-bat-dong-san-vuot-500-ngan-ty-737-1403221.htm), real estate sector inventories exceeding 500 thousand billion VND highlight widespread liquidity tie-ups across property developers. When stalled projects cannot generate revenue milestones, LDG incurred negative net revenue of 5.71 billion VND in the third quarter of 2026 due to extensive customer sales returns, expanding cumulative 9-month net losses in 2026 to 1,368.3 billion VND, or 53.25% of chartered equity capital.

## Working capital stagnation and credit underwriting rigor

According to financial system guidance from the [Government News Portal on October 31, 2026](https://baochinhphu.vn/bao-dam-cho-doanh-nghiep-tiep-can-von-vay-voi-lai-suat-phu-hop-102261031094012587.htm), the banking system maintains appropriate borrowing rate conditions for financially viable corporations throughout October 2026. However, credit institutions enforce strict prudential safeguards against enterprises incurring group 3 to group 5 non-performing loans or suffering structural cash deficits.

According to regulatory directives published by the [Government News Portal on October 28, 2026](https://baochinhphu.vn/bao-ve-quyen-loi-chinh-dang-cua-nha-dau-tu-va-cac-thanh-vien-thi-truong-chung-khoan-102261028130109121.htm), upholding lawful market integrity necessitates complete transparency regarding asset impairment provisions and timely disclosure of corporate bond settlement delays during October 2026.

According to market commentary from [Tin nhanh Chung khoan](https://www.tinnhanhchungkhoan.vn/ap-luc-ban-gia-tang-vn-index-giam-hon-11-diem-post400437.html), the VN-Index has experienced downward adjustments exceeding 11 points during trading phases in 2026 when investors responded defensively to corporate debt distress headlines within small- and mid-cap real estate developers.

## Risk identification lessons for fundamental analysts

Acute liquidity exhaustion provides a crucial lesson regarding the structural boundary separating reported accounting profit from actual cash collection. A corporate entity may maintain an asset base valued in thousands of billions of VND yet still face operational stagnation if its quick ratio falls beneath viable survival levels. When credit institutions halt further loan disbursements, the absence of an operating cash cushion quickly freezes working capital cycles.

In fundamental investment analysis, examining the quality of short-term receivables and adjusting book values for illiquid project holdings constitutes an indispensable audit procedure. Enterprises characterized by short-term debts exceeding liquid cash balances and accumulating large non-performing asset portfolios warrant rigorous scrutiny regarding technical restructuring risks during the Q4 2026 reporting period. Conducting disciplined balance sheet stress tests helps equity investors steer clear of distressed corporate debt situations. Incorporating realistic collateral valuation haircuts provides a reliable defense against sudden corporate insolvency announcements.

## Sources

- Tin nhanh Chung khoan: [LDG Investment holds merely 0.39 billion VND cash while overdue debt reaches 734.34 billion VND](https://www.tinnhanhchungkhoan.vn/dau-tu-ldg-chi-con-039-ty-dong-tien-mat-trong-khi-phat-sinh-no-qua-han-chua-thanh-toan-73434-ty-dong-post400577.html) (01/11/2026)
- Vietstock: [Real estate developer inventory surpasses 500 thousand billion VND](https://vietstock.vn/2026/02/ton-kho-bat-dong-san-vuot-500-ngan-ty-737-1403221.htm) (2026)
- Government News Portal: [Ensuring corporate enterprise access to bank loans at appropriate interest rates](https://baochinhphu.vn/bao-dam-cho-doanh-nghiep-tiep-can-von-vay-voi-lai-suat-phu-hop-102261031094012587.htm) (31/10/2026)
- Government News Portal: [Safeguarding legitimate investor interests and financial market participants](https://baochinhphu.vn/bao-ve-quyen-loi-chinh-dang-cua-nha-dau-tu-va-cac-thanh-vien-thi-truong-chung-khoan-102261028130109121.htm) (28/10/2026)
- Tin nhanh Chung khoan: [Selling pressure expands as the VN-Index declines by over 11 points](https://www.tinnhanhchungkhoan.vn/ap-luc-ban-gia-tang-vn-index-giam-hon-11-diem-post400437.html) (2026)

## Frequently asked questions

### What fundamental risk does the quick ratio capture on corporate balance sheets?

The quick ratio assesses whether a firm possesses adequate liquid assets to meet immediate short-term obligations without relying on forced inventory liquidation.

### Why can enterprises with substantial headline assets experience acute liquidity failure?

When assets consist predominantly of unfinished real estate inventory and uncollectible receivables, the firm lacks actual cash inflows to service mature debt obligations.

### At what statistical threshold does the cash ratio signal critical insolvency risk?

When the cash ratio drops below 0.1, or plunges to 0.0005 in distressed situations with overdue obligations, the company faces severe technical default vulnerabilities.

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_Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._

_Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._