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. TUI AG's quick ratio for the quarter that ended in Dec. 2023 was 0.51.
TUI AG has a quick ratio of 0.51. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for TUI AG's Quick Ratio or its related term are showing as below:
TUIFY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.39 Med: 0.54 Max: 0.72
Current: 0.51
During the past 13 years, TUI AG's highest Quick Ratio was 0.72. The lowest was 0.39. And the median was 0.54.
TUIFY's Quick Ratio is ranked worse than 79.57% of 837
companies
in the Travel & Leisure industry
Industry Median: 1.1
vs TUIFY: 0.51
TUI AG Quick Ratio Historical Data
The historical data trend for TUI AG'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 Travel Services subindustry, TUI AG'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.
TUI AG's Quick Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, TUI AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where TUI AG's Quick Ratio falls into.
TUI AG 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.
TUI AG's Quick Ratio for the fiscal year that ended in Sep. 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.
TUI AG (OTCPK:TUIFY) 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.
TUI AG Quick Ratio Related Terms
Thank you for viewing the detailed overview of TUI AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
TUI AG is a leisure and tourism company that operates airlines, cruises, tours, hotels, and resorts globally. The company organizes itself into six segments: Northern region, Central region, Western region, hotels and resorts, TUI Musement and cruises. Northern region principally comprises TUI's tour operators, airlines, and cruise business in the U.K., Ireland, and the Nordics. Central region includes the company's tour operators in Germany, Australia, Switzerland, and Poland, and the TUI fly airline. Western region includes TUI tour operators and airlines in Belgium and the Netherlands, and tour operators in France. The Northern, Central, and Western regions are the segments by revenue, in that order, and collectively constitute the vast majority of revenue.
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