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. Taomee Holdings's quick ratio for the quarter that ended in Sep. 2015 was 3.30.
Taomee Holdings has a quick ratio of 3.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for Taomee Holdings's Quick Ratio or its related term are showing as below:
TAOM's Quick Ratio is not ranked *
in the Interactive Media industry.
Industry Median: 1.9 * Ranked among companies with meaningful Quick Ratio only.
Taomee Holdings Quick Ratio Historical Data
The historical data trend for Taomee Holdings'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 Taomee Holdings's Quick Ratio
For the Internet Content & Information subindustry, Taomee Holdings'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.
Taomee Holdings's Quick Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Taomee Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Taomee Holdings's Quick Ratio falls into.
Taomee Holdings 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.
Taomee Holdings's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Taomee Holdings (NYSE:TAOM) 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.
Taomee Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Taomee Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Taomee Holdings (Taomee Holdings) Business Description
Taomee Holdings Limited, was incorporated under the laws of the Cayman Islands in September 2008. It is a children's entertainment and media company in China. The Company provides a diverse portfolio of services and products through two business segments: online business, and offline business. The online business includes developing and operating online virtual worlds, other online entertainment services as well as mobile applications. Its offline business focuses on merchandise licensing, publishing, design and distribution of interactive toys, as well as the development of media and entertainment products, such as films, and self-branded TV shows. The Company develops and popularize children's books and magazines featuring its franchises and characters in conjunction with third-party publishers. The Company license its franchises to the brands in China, such as "Bright Dairy" and "China Citic Bank" and other consumer goods makers in categories such as apparel, toys, accessories, stationery, consumer electronics, and food and beverages. Its products may also offer promotional and interactive features that allow its customers to explore and interactive with the online platform. The Company's competitors includes Tencent Holdings Limited, or Tencent, the developer of Roco Kingdom and Guangzhou Baitian Information Technology Ltd., the developer of Aola Star and Aobi Island, Guangdong Alpha Animation and Culture Co., Ltd. The Company also attends animation and toy exhibitions and expos, such as the Chinajoy Digital Entertainment Expo and Conference that usually attract a large number of children and their parents to reach more potential users.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TAOM has been successfully added to your 