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. Virgin America's quick ratio for the quarter that ended in Sep. 2016 was 1.55.
Virgin America has a quick ratio of 1.55. It generally indicates good short-term financial strength.
The historical rank and industry rank for Virgin America's Quick Ratio or its related term are showing as below:
VA's Quick Ratio is not ranked *
in the Transportation industry.
Industry Median: 1.26 * Ranked among companies with meaningful Quick Ratio only.
Virgin America Quick Ratio Historical Data
The historical data trend for Virgin America'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 Virgin America's Quick Ratio
For the Airlines subindustry, Virgin America'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.
Virgin America's Quick Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Virgin America's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Virgin America's Quick Ratio falls into.
Virgin America 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.
Virgin America'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.
Virgin America (NAS:VA) 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.
Virgin America Quick Ratio Related Terms
Thank you for viewing the detailed overview of Virgin America's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Virgin America (Virgin America) Business Description
Virgin America Inc was incorporated in the state of Delaware in 2004. The Company is low-cost airline based in California that provides scheduled air travel in the continental United States and Mexico. It operates from its focus cities of Los Angeles and San Francisco to other business and leisure destinations in North America. It provides a distinctive offering for its passengers, whom it calls guests, that is centered around its brand and its travel experience, while at the same time maintaining a low-cost structure through its point-to-point network and high utilization of its efficient, single fleet type. The principal competitors on domestic routes are Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways, Southwest Airlines and United Airlines. Virgin America, the Virgin America logo and the Virgin signature are trademarks of the Company.
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