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. Legacy Reserves's quick ratio for the quarter that ended in Sep. 2019 was 0.14.
Legacy Reserves has a quick ratio of 0.14. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Legacy Reserves's Quick Ratio or its related term are showing as below:
LGCYP.PFD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.91 Max: 2.35
Current: 0.14
During the past 13 years, Legacy Reserves's highest Quick Ratio was 2.35. The lowest was 0.02. And the median was 0.91.
LGCYP.PFD's Quick Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.1
vs LGCYP.PFD: 0.14
Legacy Reserves Quick Ratio Historical Data
The historical data trend for Legacy Reserves'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 Legacy Reserves's Quick Ratio
For the Oil & Gas E&P subindustry, Legacy Reserves'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.
Legacy Reserves's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Legacy Reserves's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Legacy Reserves's Quick Ratio falls into.
Legacy Reserves 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.
Legacy Reserves's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
Legacy Reserves (NAS:LGCYP.PFD) 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.
Legacy Reserves Quick Ratio Related Terms
Thank you for viewing the detailed overview of Legacy Reserves's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Legacy Reserves (Legacy Reserves) Business Description
Legacy Reserves LP is a limited partnership which focuses on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions of the United States. The company owns an interest in producing oil and natural gas properties in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma and several other states. The company operates through the segment being the Acquisition and development of oil and natural gas properties.
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