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. BBQ Holdings's quick ratio for the quarter that ended in Jun. 2022 was 0.64.
BBQ Holdings has a quick ratio of 0.64. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for BBQ Holdings's Quick Ratio or its related term are showing as below:
BBQ's Quick Ratio is not ranked *
in the Restaurants industry.
Industry Median: 0.89 * Ranked among companies with meaningful Quick Ratio only.
BBQ Holdings Quick Ratio Historical Data
The historical data trend for BBQ Holdings'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.
Competitive Comparison of BBQ Holdings's Quick Ratio
For the Restaurants subindustry, BBQ Holdings'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.
BBQ Holdings's Quick Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, BBQ Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where BBQ Holdings's Quick Ratio falls into.
BBQ Holdings 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.
BBQ Holdings'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.
BBQ Holdings (NAS:BBQ) 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.
BBQ Holdings Quick Ratio Related Terms
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BBQ Holdings Inc operates restaurants, which offer full table service, feature wood-smoked and off-the-grill entree favorites that fit into the barbeque category. It has company-owned and franchise-operated restaurants in the United States, Canada, and the UAE and it operates within the industry segment of foodservice. Each restaurant features a selection of hickory-smoked and off-the-grill barbecue favorites, such as flame-grilled St. Louis-style and baby back ribs, Texas beef brisket, Georgia chopped pork, country-roasted chicken, and signature sandwiches and salads. Its restaurants offer side items, such as cornbread, potato salad, coleslaw, Shack Fries, and Wilbur Beans.
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