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. Tel Instrument Electronics's quick ratio for the quarter that ended in Dec. 2023 was 0.73.
Tel Instrument Electronics has a quick ratio of 0.73. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Tel Instrument Electronics's Quick Ratio or its related term are showing as below:
TIKK'
s Quick Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.74 Max: 1.21
Current: 0.73
During the past 13 years, Tel Instrument Electronics's highest Quick Ratio was 1.21. The lowest was 0.14. And the median was 0.74.
TIKK's Quick Ratio is ranked worse than 77.96% of 313
companies
in the Aerospace & Defense industry
Industry Median: 1.09
vs TIKK: 0.73
Tel Instrument Electronics Quick Ratio Historical Data
The historical data trend for Tel Instrument Electronics'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.
* Premium members only.
Tel Instrument Electronics Annual Data
Trend
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Mar23
Quick Ratio
0.62
0.85
0.97
1.11
0.93
Tel Instrument Electronics Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
0.98
0.93
0.98
0.72
0.73
Competitive Comparison
For the Aerospace & Defense subindustry, Tel Instrument Electronics'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.
Tel Instrument Electronics Quick Ratio Distribution
For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tel Instrument Electronics's Quick Ratio falls into.
Tel Instrument Electronics 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.
Tel Instrument Electronics's Quick Ratio for the fiscal year that ended in Mar. 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.
Tel Instrument Electronics (OTCPK:TIKK) 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.
Tel Instrument Electronics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Tel Instrument Electronics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tel Instrument Electronics (Tel Instrument Electronics) Business Description
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The avionics government segment consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. The Avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines. It generates a majority of its revenue from the Avionics Government segment.
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