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. STR Holdings's quick ratio for the quarter that ended in Sep. 2019 was 1.78.
STR Holdings has a quick ratio of 1.78. It generally indicates good short-term financial strength.
The historical rank and industry rank for STR Holdings's Quick Ratio or its related term are showing as below:
STRI's Quick Ratio is not ranked *
in the Semiconductors industry.
Industry Median: 1.84 * Ranked among companies with meaningful Quick Ratio only.
STR Holdings Quick Ratio Historical Data
The historical data trend for STR Holdings'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 STR Holdings's Quick Ratio
For the Semiconductor Equipment & Materials subindustry, STR Holdings'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.
STR Holdings's Quick Ratio Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, STR Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where STR Holdings's Quick Ratio falls into.
STR Holdings 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.
STR Holdings's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
STR Holdings (OTCPK:STRI) 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.
STR Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of STR Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
STR Holdings Inc is a U.S based holding company. It is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. It has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The company's encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers' individual lamination processes and module constructions.
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