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GuruFocus has detected 4 Warning Signs with US Bancorp \$USB.
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US Bancorp (NYSE:USB)
Quick Ratio
0.00 (As of Dec. 2016)

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 Inventory divides by its Total Current Liabilities. US Bancorp's quick ratio for the quarter that ended in Dec. 2016 was 0.00.

US Bancorp has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.

Definition

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.

US Bancorp's Quick Ratio for the fiscal year that ended in Dec. 2016 is calculated as

 Quick Ratio (A: Dec. 2016 ) = (Total Current Assets - Inventory) / Total Current Liabilities = (0 - 0) / 0 =

US Bancorp's Quick Ratio for the quarter that ended in Dec. 2016 is calculated as

 Quick Ratio (Q: Dec. 2016 ) = (Total Current Assets - Inventory) / Total Current Liabilities = (0 - 0) / 0 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

US Bancorp Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 quick ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

US Bancorp Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 quick ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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