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. Diamond Foods's quick ratio for the quarter that ended in Oct. 2015 was 0.68.
Diamond Foods has a quick ratio of 0.68. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Diamond Foods's Quick Ratio or its related term are showing as below:
DMND's Quick Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.03 * Ranked among companies with meaningful Quick Ratio only.
Diamond Foods Quick Ratio Historical Data
The historical data trend for Diamond Foods'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 Diamond Foods's Quick Ratio
For the Packaged Foods subindustry, Diamond Foods'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.
Diamond Foods's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Diamond Foods's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Diamond Foods's Quick Ratio falls into.
Diamond Foods 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.
Diamond Foods's Quick Ratio for the fiscal year that ended in Jul. 2015 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.
Diamond Foods (NAS:DMND) 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.
Diamond Foods Quick Ratio Related Terms
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Diamond Foods (Diamond Foods) Business Description
Diamond Foods Inc was incorporated in Delaware in 2005 as the successor to Diamond Walnut Growers, Inc., a member-owned California agricultural cooperative association. In July 2005, Diamond Walnut Growers, Inc. merged with and into Diamond Foods, Inc., converted from a cooperative association to a Delaware corporation and completed an initial public offering of Diamond Foods' common stock. The Company is a packaged food company focused on building and energizing brands. It is engaged in processing, marketing and distributing snack products and culinary, in-shell and ingredient nuts. The Company's segments include Snacks and Nuts. The Company sells snack products under Kettle Brand(r) and Pop Secret(r) brands. Microwave popcorn products are offered in traditional flavors. In March 2010, the Company complemented its snack portfolio with the acquisition of Kettle Foods, a premium potato chip company. Kettle Foods products are offered in a variety of flavors and sizes. Its snack products are typically available in grocery store snack, natural and produce aisles, mass merchandisers, club stores, convenience stores, drug stores, natural food stores and other places where snacks are sold. Under the nuts segment the Company sells nut products under the Emerald brand, and Diamond of California(r) brand in grocery store baking aisles and produce aisles and through mass merchandisers and club stores. Culinary nuts are marketed to individuals who prepare meals or baked goods at home and who value fresh, high-quality products. The Company also sell in-shell nuts under the Diamond of California(r) brand during the winter holiday season. Its non-retail nut business includes international markets and North American ingredient customers. It market ingredient nuts internationally under the Diamond of California(r) brand to food processors, restaurants, bakeries and food service companies and their suppliers. Diamond's institutional and industrial customers use its standard or customer-specified products to add flavor and texture in their product offerings. It also sells in-shell nuts to international markets. Emerald products include roasted, glazed and flavored nuts, trail mixes, granola, dried fruit and similar offerings that are sold where snack nuts and convenient breakfast items are sold. The Company obtains its raw materials from domestic and international sources. The Company's products competes with other food industries. It is subject to governmental laws and regulations.
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