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. Outerwall's quick ratio for the quarter that ended in Jun. 2016 was 0.99.
Outerwall has a quick ratio of 0.99. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Outerwall's Quick Ratio or its related term are showing as below:
OUTR's Quick Ratio is not ranked *
in the Retail - Cyclical industry.
Industry Median: 0.88 * Ranked among companies with meaningful Quick Ratio only.
Outerwall Quick Ratio Historical Data
The historical data trend for Outerwall'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.
For the Specialty Retail subindustry, Outerwall'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.
Outerwall's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Outerwall's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Outerwall's Quick Ratio falls into.
Outerwall 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.
Outerwall'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.
Outerwall (NAS:OUTR) 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.
Outerwall Quick Ratio Related Terms
Thank you for viewing the detailed overview of Outerwall's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Outerwall Inc was incorporated in Delaware on October 12, 1993. The Company is a provider of automated retail solutions offering convenient products and services that benefit consumers and drive incremental retail traffic and revenue for retailers. The Company's automated retail includes its redbox segment where consumers can rent or purchase movies from self-service kiosks and its Coin segment where consumers can convert their coin to cash or stored value products at coin-counting self-service kiosks. The redbox business faces competition from many other providers, including those using other distribution channels. The coinstar business faces competition from supermarkets, banks and other companies that purchase and operate coin-counting equipment from companies such as ScanCoin, Cummins-Allison Corporation and others. The ecoATM business faces competition from the companies whose primary business consists of the purchase of used electronics, online retailers and web sites such as Gazelle, as well as brick and mortar stores which buy back used electronics. The business of the Company is subject to federal, state, local and foreign laws and government regulation.
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