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. IEC Electronics's quick ratio for the quarter that ended in Jun. 2021 was 1.00.
IEC Electronics has a quick ratio of 1.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for IEC Electronics's Quick Ratio or its related term are showing as below:
IEC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.95 Max: 2.07
Current: 1
During the past 13 years, IEC Electronics's highest Quick Ratio was 2.07. The lowest was 0.35. And the median was 0.95.
IEC's Quick Ratio is not ranked
in the Hardware industry.
Industry Median: 1.475
vs IEC: 1.00
IEC Electronics Quick Ratio Historical Data
The historical data trend for IEC 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.
Competitive Comparison of IEC Electronics's Quick Ratio
For the Electronic Components subindustry, IEC 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.
IEC Electronics's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, IEC Electronics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where IEC Electronics's Quick Ratio falls into.
IEC 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.
IEC Electronics's Quick Ratio for the fiscal year that ended in Sep. 2020 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.
IEC Electronics (NAS:IEC) 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.
IEC Electronics Quick Ratio Related Terms
Thank you for viewing the detailed overview of IEC Electronics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
IEC Electronics (IEC Electronics) Business Description
IEC Electronics Corp operates in an electronics contract manufacturing services (EMS) industry. It provides electronic manufacturing services to advanced technology companies primarily in the medical, industrial, aerospace and defense sectors. Its offerings include on-site analytical testing laboratories, custom design, and test engineering services. The firm also offers a broad array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. The majority of its revenue is derived from the sale of electronic products.
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