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. Educational Development's quick ratio for the quarter that ended in Nov. 2023 was 1.24.
Educational Development has a quick ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Educational Development's Quick Ratio or its related term are showing as below:
EDUC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.31 Max: 1.24
Current: 1.24
During the past 13 years, Educational Development's highest Quick Ratio was 1.24. The lowest was 0.08. And the median was 0.31.
EDUC's Quick Ratio is ranked worse than 57.67% of 1056
companies
in the Media - Diversified industry
Industry Median: 1.45
vs EDUC: 1.24
Educational Development Quick Ratio Historical Data
The historical data trend for Educational Development'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 Educational Development's Quick Ratio
For the Publishing subindustry, Educational Development'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.
Educational Development's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Educational Development's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Educational Development's Quick Ratio falls into.
Educational Development 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.
Educational Development's Quick Ratio for the fiscal year that ended in Feb. 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.
Educational Development (NAS:EDUC) 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.
Educational Development Quick Ratio Related Terms
Thank you for viewing the detailed overview of Educational Development's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Educational Development (Educational Development) Business Description
Educational Development Corp is the United States trade publisher of the line of educational children's books produced in the United Kingdom. Its business activity functions with two reportable segments: Direct Sales Division segment and Publishing Division segment. The Publishing Division segment markets its products to retail accounts, which include the book, school supplies, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group. The Direct Sales Division segment sells their books and products through independent brand partners direct to the customer. It derives a majority of revenue from the Direct sales division segment.
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