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. Rocket Fuel's quick ratio for the quarter that ended in Jun. 2017 was 0.97.
Rocket Fuel has a quick ratio of 0.97. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Rocket Fuel's Quick Ratio or its related term are showing as below:
FUEL's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.46 * Ranked among companies with meaningful Quick Ratio only.
Rocket Fuel Quick Ratio Historical Data
The historical data trend for Rocket Fuel'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 Rocket Fuel's Quick Ratio
For the Advertising Agencies subindustry, Rocket Fuel'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.
Rocket Fuel's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Rocket Fuel's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rocket Fuel's Quick Ratio falls into.
Rocket Fuel 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.
Rocket Fuel's Quick Ratio for the fiscal year that ended in Dec. 2016 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.
Rocket Fuel (NAS:FUEL) 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.
Rocket Fuel Quick Ratio Related Terms
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Rocket Fuel Inc is a US-based technology company focusing on digital marketing. The company offers a predictive marketing platform designed to help marketers and their agencies connect with consumers through digital media. Services provided by the company are organized into two platforms Demand Side Platform (DSP) and Data Management Platform (DMP). The integrated platform of DSP plus DMP solutions are designed to deliver and optimize media spend to engage consumers across addressable channels-including display, mobile, video, social, and television, and across addressable devices, including tablets, personal computers, set-top boxes, television, and mobile phones. The company operates its business in the US and other countries. Most of the company's revenue is generated from the US.
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