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. LinnCo LLC's quick ratio for the quarter that ended in Sep. 2016 was 0.55.
LinnCo LLC has a quick ratio of 0.55. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for LinnCo LLC's Quick Ratio or its related term are showing as below:
LNCOQ's Quick Ratio is not ranked *
in the Oil & Gas industry.
Industry Median: 1.11 * Ranked among companies with meaningful Quick Ratio only.
LinnCo LLC Quick Ratio Historical Data
The historical data trend for LinnCo LLC'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 LinnCo LLC's Quick Ratio
For the Oil & Gas E&P subindustry, LinnCo LLC'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.
LinnCo LLC's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, LinnCo LLC's Quick Ratio distribution charts can be found below:
* The bar in red indicates where LinnCo LLC's Quick Ratio falls into.
LinnCo LLC 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.
LinnCo LLC's Quick Ratio for the fiscal year that ended in Dec. 2015 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.
LinnCo LLC (OTCPK:LNCOQ) 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.
LinnCo LLC Quick Ratio Related Terms
Thank you for viewing the detailed overview of LinnCo LLC's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
LinnCo LLC is a Delaware limited liability company formed on April 30, 2012, under the Delaware Limited Liability Company Act. The Company owns interests in Linn Energy, LLC. It had no significant assets or operations other than those related to its interest in LINN Energy. LINN Energy is an independent oil and natural gas company. Its properties, including those acquired in the Berry acquisition, are located in seven operating regions in the U.S. are Rockies, which includes properties located in Wyoming (Green River Basin and Powder River Basin), Utah (Uinta Basin), North Dakota (Williston Basin) and Colorado (Piceance Basin); Mid-Continent, which includes properties in Oklahoma, Louisiana and the eastern portion of the Texas Panhandle (including the Granite Wash and Cleveland horizontal plays); Hugoton Basin, which includes properties located in Kansas and the Shallow Texas Panhandle; California, which includes the San Joaquin Valley Basin and the Los Angeles Basin; Permian Basin, which includes areas in west Texas and southeast New Mexico; Michigan/Illinois, which includes the Antrim Shale formation in the northern part of Michigan and oil properties in southern Illinois; and East Texas, which includes properties located in east Texas.
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