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. Eve Holding's quick ratio for the quarter that ended in Mar. 2024 was 4.96.
Eve Holding has a quick ratio of 4.96. It generally indicates good short-term financial strength.
The historical rank and industry rank for Eve Holding's Quick Ratio or its related term are showing as below:
EVEX'
s Quick Ratio Range Over the Past 10 Years
Min: 0.05 Med: 6.32 Max: 16.66
Current: 4.96
During the past 5 years, Eve Holding's highest Quick Ratio was 16.66. The lowest was 0.05. And the median was 6.32.
EVEX's Quick Ratio is ranked better than 92.04% of 314
companies
in the Aerospace & Defense industry
Industry Median: 1.115
vs EVEX: 4.96
Eve Holding Quick Ratio Historical Data
The historical data trend for Eve Holding'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 Eve Holding's Quick Ratio
For the Aerospace & Defense subindustry, Eve Holding'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.
Eve Holding's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Eve Holding's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Eve Holding's Quick Ratio falls into.
Eve Holding 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.
Eve Holding's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
Eve Holding (NYSE:EVEX) 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.
Eve Holding Quick Ratio Related Terms
Thank you for viewing the detailed overview of Eve Holding's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Eve Holding Inc is dedicated to accelerating the Urban Air Mobility ecosystem. Eve is taking a holistic approach to progressing the UAM ecosystem, with an advanced eVTOL project, a comprehensive global services and support network, and a unique air traffic management solution, combining a start-up mindset with Embraer's aerospace expertise.
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