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Cascade Corporation (NYSE:CASC)
Quick Ratio
2.81 (As of Jan. 2013)

The current 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 Inventory divides by its Total Current Liabilities. Cascade Corporation's quick ratio for the quarter that ended in Jan. 2013 was 2.81.

Cascade Corporation has a quick ratio of 2.81. It generally indicates good short-term financial strength.

CASC' s 10-Year Quick Ratio Range
Min: 0   Max: 0
Current: 0

CASC's Quick Ratiois ranked lower than
67% of the 183 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.06 vs. CASC: 0.00 )

Definition

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.

Cascade Corporation's Quick Ratio for the fiscal year that ended in Jan. 2013 is calculated as

Quick Ratio (A: Jan. 2013 )=(Total Current Assets-Inventory)/Total Current Liabilities
=(228.908-88.297)/50.051
=2.81

Cascade Corporation's Quick Ratio for the quarter that ended in Jan. 2013 is calculated as

Quick Ratio (Q: Jan. 2013 )=(Total Current Assets-Inventory)/Total Current Liabilities
=(228.908-88.297)/50.051
=2.81

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


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.


Related Terms

Total Current Assets, Total Current Liabilities, Inventory, Current Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cascade Corporation Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
quick ratio 1.881.772.031.792.042.642.022.412.222.81

Cascade Corporation Quarterly Data

Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13
quick ratio 2.512.412.462.612.262.222.292.912.632.81
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