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. LSI Industries's quick ratio for the quarter that ended in Dec. 2023 was 1.24.
LSI Industries has a quick ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for LSI Industries's Quick Ratio or its related term are showing as below:
LYTS'
s Quick Ratio Range Over the Past 10 Years
Min: 0.93 Med: 1.41 Max: 2.49
Current: 1.24
During the past 13 years, LSI Industries's highest Quick Ratio was 2.49. The lowest was 0.93. And the median was 1.41.
LYTS's Quick Ratio is ranked worse than 60.27% of 2484
companies
in the Hardware industry
Industry Median: 1.475
vs LYTS: 1.24
LSI Industries Quick Ratio Historical Data
The historical data trend for LSI Industries'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 LSI Industries's Quick Ratio
For the Electronic Components subindustry, LSI Industries'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.
LSI Industries's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, LSI Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where LSI Industries's Quick Ratio falls into.
LSI Industries 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.
LSI Industries's Quick Ratio for the fiscal year that ended in Jun. 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.
LSI Industries (NAS:LYTS) 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.
LSI Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of LSI Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
LSI Industries (LSI Industries) Business Description
LSI Industries Inc provides corporate visual image solutions to the petroleum and convenience store industry. The company's operating segments include Lighting and Display Solutions. It generates maximum revenue from the Lighting segment. Lighting Segment manufactures and markets outdoor and indoor lighting and lighting controls for the commercial, industrial, and multi-site retail markets including the petroleum/convenience store, quick-service, and automotive markets. The Display Solutions Segment manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements.
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