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. Geospace Technologies's quick ratio for the quarter that ended in Dec. 2023 was 3.79.
Geospace Technologies has a quick ratio of 3.79. It generally indicates good short-term financial strength.
The historical rank and industry rank for Geospace Technologies's Quick Ratio or its related term are showing as below:
GEOS'
s Quick Ratio Range Over the Past 10 Years
Min: 2.38 Med: 3.86 Max: 9.11
Current: 3.79
During the past 13 years, Geospace Technologies's highest Quick Ratio was 9.11. The lowest was 2.38. And the median was 3.86.
GEOS's Quick Ratio is ranked better than 86.7% of 1075
companies
in the Oil & Gas industry
Industry Median: 1.11
vs GEOS: 3.79
Geospace Technologies Quick Ratio Historical Data
The historical data trend for Geospace Technologies'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 Geospace Technologies's Quick Ratio
For the Oil & Gas Equipment & Services subindustry, Geospace Technologies'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.
Geospace Technologies's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Geospace Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Geospace Technologies's Quick Ratio falls into.
Geospace Technologies 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.
Geospace Technologies's Quick Ratio for the fiscal year that ended in Sep. 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.
Geospace Technologies (NAS:GEOS) 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.
Geospace Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Geospace Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Geospace Technologies (Geospace Technologies) Business Description
Geospace Technologies Corp is engaged in designing and manufacturing of seismic instruments and non-seismic equipment used in the oil and gas industry. The company has three different segments: oil and gas markets, adjacent markets, and emerging markets. The oil and gas markets segment, which accounts for the majority of the company's revenue, includes traditional exploration products, wireless exploration products, and reservoir characterization products and services. The adjacent markets business is closely tied to the oil and gas markets and includes imaging products and industrial products. The company operates globally across Asia, Canada, Europe, South America and others with more than half of revenue generated within the United States.
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