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. Net Element's quick ratio for the quarter that ended in Jun. 2021 was 1.19.
Net Element has a quick ratio of 1.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Net Element's Quick Ratio or its related term are showing as below:
NETE's Quick Ratio is not ranked *
in the Software industry.
Industry Median: 1.67 * Ranked among companies with meaningful Quick Ratio only.
Net Element Quick Ratio Historical Data
The historical data trend for Net Element'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 Net Element's Quick Ratio
For the Software - Infrastructure subindustry, Net Element'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.
Net Element's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Net Element's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Net Element's Quick Ratio falls into.
Net Element 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.
Net Element's Quick Ratio for the fiscal year that ended in Dec. 2020 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.
Net Element (NAS:NETE) 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.
Net Element Quick Ratio Related Terms
Thank you for viewing the detailed overview of Net Element's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Net Element Inc is a financial technology-driven group specializing in mobile payments and other transactional services in emerging countries and the United States. It operates through two segments. The North America Transaction Solutions segment provides technology and services to businesses that are required to accept cashless transactions, mobile payment services, merchant performance analytical tools, and merchant back office reporting; and the International Transaction Solutions segment provides online and mobile commerce solutions for merchants including social networks, game developers, online magazines, mobile applications and digital media operators. The company generates a majority of its revenue from the North America transaction solutions segment.
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