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. Life Storage's quick ratio for the quarter that ended in Mar. 2023 was 0.09.
Life Storage has a quick ratio of 0.09. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Life Storage's Quick Ratio or its related term are showing as below:
LSI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.16 Max: 20.21
Current: 0.09
During the past 13 years, Life Storage's highest Quick Ratio was 20.21. The lowest was 0.06. And the median was 0.16.
LSI's Quick Ratio is not ranked
in the REITs industry.
Industry Median: 0.94
vs LSI: 0.09
Life Storage Quick Ratio Historical Data
The historical data trend for Life Storage'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 Life Storage's Quick Ratio
For the REIT - Industrial subindustry, Life Storage'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.
Life Storage's Quick Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Life Storage's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Life Storage's Quick Ratio falls into.
Life Storage 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.
Life Storage's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Life Storage (NYSE:LSI) 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.
Life Storage Quick Ratio Related Terms
Thank you for viewing the detailed overview of Life Storage's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Life Storage Inc (which was rebranded from Sovran Self Storage, Inc in 2016) is a fully integrated, real estate investment trust that acquires and manages self-storage properties throughout the United States. The company operates under the brand names Life Storage. Approximately under half of the company's revenue is derived from stores in the states of Texas and Florida. The remainder of sales is distributed across the United States. The company's operations in rental income from customers renting storage space on a month-to-month basis generate a majority of operating revenue. The company also offers storage to both individuals of commercial renters and has special storage units available for vehicles and wine.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSI has been successfully added to your 