Luna Innovations has a quick ratio of 1.62. It generally indicates good short-term financial strength.
The historical rank and industry rank for Luna Innovations's Quick Ratio or its related term are showing as below:
LUNA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.39 Med: 1.93 Max: 5.51
Current: 1.62
During the past 13 years, Luna Innovations's highest Quick Ratio was 5.51. The lowest was 1.39. And the median was 1.93.
LUNA's Quick Ratio is ranked better than 54.91% of 2484
companies
in the Hardware industry
Industry Median: 1.48
vs LUNA: 1.62
Luna Innovations Quick Ratio Historical Data
The historical data trend for Luna Innovations'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 Luna Innovations's Quick Ratio
For the Scientific & Technical Instruments subindustry, Luna Innovations'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.
Luna Innovations's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Luna Innovations's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Luna Innovations's Quick Ratio falls into.
Luna Innovations 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.
Luna Innovations'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.
Luna Innovations (NAS:LUNA) 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.
Luna Innovations Quick Ratio Related Terms
Thank you for viewing the detailed overview of Luna Innovations's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Luna Innovations (Luna Innovations) Business Description
Luna Innovations Inc is engaged in optical technology, providing high-performance fiber optic test, measurement, and control products for the telecommunications, and photonics industries, and distributed fiber optic sensing solutions that measure and monitor materials and structures for applications in aerospace, automotive, oil, and gas, security, and infrastructure. Its Lightwave segment develops, manufactures, and markets optical measurements technologies like Sensing including short, medium, and long-range distributed fiber optic sensing solutions and Terahertz measurement products, and Communications test and photonic control including test equipment for communications devices and networks and specialty laser and photonic components. It derives a majority of its revenue from the U.S.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LUNA has been successfully added to your 