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. KonaRed's quick ratio for the quarter that ended in Dec. 2017 was 0.16.
KonaRed has a quick ratio of 0.16. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for KonaRed's Quick Ratio or its related term are showing as below:
KRED's Quick Ratio is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 1.27 * Ranked among companies with meaningful Quick Ratio only.
KonaRed Quick Ratio Historical Data
The historical data trend for KonaRed'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.
For the Beverages - Non-Alcoholic subindustry, KonaRed'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.
KonaRed's Quick Ratio Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, KonaRed's Quick Ratio distribution charts can be found below:
* The bar in red indicates where KonaRed's Quick Ratio falls into.
KonaRed 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.
KonaRed's Quick Ratio for the fiscal year that ended in Dec. 2017 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.
KonaRed (OTCPK:KRED) 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.
KonaRed Quick Ratio Related Terms
Thank you for viewing the detailed overview of KonaRed's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
KonaRed Corp is engaged in the business of distributing, marketing and selling of retail sale the food and beverage products based on the fruit of the coffee plant. Its products are coffee fruit wellness drink and KonaRed Antioxidant Juice. The company produces Ready to Drink 12oz Cold Brew Coffee varieties, Bag in the Box, Key Kegs, a complete line of whole bean and ground Kona Coffee Beans including RTD Antioxidant Juices and Hawaiian Coffee Fruit nutritional supplements. It also has an industrial ingredient supply division. Its products are sold throughout the US and can be found in select Vons, Albertsons, Publix, Pavilions, Costco, Ralphs, Fred Meyer, King Soopers, Smiths, Kroger, Safeway, Vitamin Shoppe, Target, Whole Foods, 7-Eleven, and many other retail outlets.
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