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. Pason Systems's quick ratio for the quarter that ended in Mar. 2024 was 2.42.
Pason Systems has a quick ratio of 2.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Pason Systems's Quick Ratio or its related term are showing as below:
FRA:3PS'
s Quick Ratio Range Over the Past 10 Years
Min: 2.42 Med: 5.96 Max: 12.85
Current: 2.42
During the past 13 years, Pason Systems's highest Quick Ratio was 12.85. The lowest was 2.42. And the median was 5.96.
FRA:3PS's Quick Ratio is ranked better than 78.46% of 1077
companies
in the Oil & Gas industry
Industry Median: 1.1
vs FRA:3PS: 2.42
Pason Systems Quick Ratio Historical Data
The historical data trend for Pason Systems'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 Pason Systems's Quick Ratio
For the Oil & Gas Equipment & Services subindustry, Pason Systems'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.
Pason Systems's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pason Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Pason Systems's Quick Ratio falls into.
Pason Systems 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.
Pason Systems'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.
Pason Systems (FRA:3PS) 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.
Pason Systems Quick Ratio Related Terms
Thank you for viewing the detailed overview of Pason Systems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Pason Systems Inc is an oilfield specialist with fully integrated drilling data solutions. A host of products allow customers to collect, manage, report, and analyze drilling data for performance optimization and cost control. The electronic drilling recorder is the company's primary product, and provides a complete system of drilling data acquisition, data networking, drilling management tools, and reports at both the wellsite and customer office. Other product offerings include wellbore detection solutions, wellsite communications and bandwidth, wellbore gas analyzers, and software for data management. The company operates in three geographic segments: Canada, the United States, and International (Latin America, Offshore, the Eastern Hemisphere, and the Middle East).
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