NightDragon Acquisition (NightDragon Acquisition) Quick Ratio : 1.73 (As of Sep. 2022)

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What is NightDragon Acquisition Quick Ratio?

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. NightDragon Acquisition's quick ratio for the quarter that ended in Sep. 2022 was 1.73.

NightDragon Acquisition has a quick ratio of 1.73. It generally indicates good short-term financial strength.

The historical rank and industry rank for NightDragon Acquisition's Quick Ratio or its related term are showing as below:

NDACW' s Quick Ratio Range Over the Past 10 Years
Min: 0.1 Med: 3.18 Max: 10.86
Current: 1.73

During the past 2 years, NightDragon Acquisition's highest Quick Ratio was 10.86. The lowest was 0.10. And the median was 3.18.

NDACW's Quick Ratio is not ranked
in the Diversified Financial Services industry.
Industry Median: 1.14 vs NDACW: 1.73

NightDragon Acquisition Quick Ratio Historical Data

The historical data trend for NightDragon Acquisition'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.

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NightDragon Acquisition Quick Ratio Chart

NightDragon Acquisition Annual Data

Trend

Dec20

Dec21

Quick Ratio

0.08

3.54

NightDragon Acquisition Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Quick Ratio	Get a 7-Day Free Trial			6.26	3.54	2.82	2.57	1.73

Competitive Comparison of NightDragon Acquisition's Quick Ratio

For the Shell Companies subindustry, NightDragon Acquisition'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.

NightDragon Acquisition's Quick Ratio Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, NightDragon Acquisition's Quick Ratio distribution charts can be found below:

* The bar in red indicates where NightDragon Acquisition's Quick Ratio falls into.

NightDragon Acquisition 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.

NightDragon Acquisition's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1.738	-	0)	/	0.491
	=	3.54

NightDragon Acquisition's Quick Ratio for the quarter that ended in Sep. 2022 is calculated as

Quick Ratio (Q: Sep. 2022 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(0.791	-	0)	/	0.458
	=	1.73

NightDragon Acquisition (NAS:NDACW) 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.

NightDragon Acquisition Quick Ratio Related Terms

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