UTStarcom Holdings has a quick ratio of 3.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for UTStarcom Holdings's Quick Ratio or its related term are showing as below:
UTSI'
s Quick Ratio Range Over the Past 10 Years
Min: 1 Med: 1.81 Max: 3.09
Current: 3.09
During the past 13 years, UTStarcom Holdings's highest Quick Ratio was 3.09. The lowest was 1.00. And the median was 1.81.
UTSI's Quick Ratio is ranked better than 80.56% of 2484
companies
in the Hardware industry
Industry Median: 1.48
vs UTSI: 3.09
UTStarcom Holdings Quick Ratio Historical Data
The historical data trend for UTStarcom 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 UTStarcom Holdings's Quick Ratio
For the Communication Equipment subindustry, UTStarcom 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.
UTStarcom Holdings's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, UTStarcom Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where UTStarcom Holdings's Quick Ratio falls into.
UTStarcom 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.
UTStarcom Holdings's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
UTStarcom Holdings (NAS:UTSI) 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.
UTStarcom Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of UTStarcom Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
UTStarcom Holdings (UTStarcom Holdings) Business Description
UTStarcom Holdings Corp operates as a telecom infrastructure provider. It develops technology for bandwidth from cloud-based services, mobile, streaming, and other applications. The range of solutions is designed to expand and modernize telecommunications networks through smooth network system integration, lower operating costs, and increased broadband access. The business activity of the firm is operated through the Equipment and Service segment. The Equipment segment is focused on equipment sales, including network infrastructure and application products, and the Service segment is engaged in providing services and support of equipment products and also the new operational support. The company operates in China, India, Japan, Taiwan, and other countries.
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