The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Q4's Cash Ratio for the quarter that ended in Sep. 2023 was 0.92.
Q4 has a Cash Ratio of 0.92. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Q4's Cash Ratio or its related term are showing as below:
TSX:QFOR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.2 Med: 1.14 Max: 2.83
Current: 0.92
During the past 5 years, Q4's highest Cash Ratio was 2.83. The lowest was 0.20. And the median was 1.14.
TSX:QFOR's Cash Ratio is not ranked
in the Software industry.
Industry Median: 0.78
vs TSX:QFOR: 0.92
Q4 Cash Ratio Historical Data
The historical data trend for Q4's Cash 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.
* Premium members only.
Q4 Annual Data
Trend
Dec18
Dec19
Dec20
Dec21
Dec22
Cash Ratio
-
1.05
0.20
2.83
1.37
Q4 Quarterly Data
Dec18
Dec19
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Cash Ratio
1.72
1.37
1.17
1.10
0.92
Competitive Comparison
For the Software - Application subindustry, Q4's Cash Ratio, along with its competitors' market caps and Cash 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.
Q4 Cash Ratio Distribution
For the Software industry and Technology sector, Q4's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Q4's Cash Ratio falls into.
Q4 Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Q4's Cash 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.
Q4 (TSX:QFOR) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Q4 Cash Ratio Related Terms
Thank you for viewing the detailed overview of Q4's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Q4 Inc is a provider of a capital markets communication software platform. It offers a broad suite of products to publicly listed companies, investment managers and investment banks along with a variety of workflows, including investor relations, corporate access, deal management and research. The company's cloud-based software platform of products provides corporate customers with critical technology infrastructure and data that may be used to support their investor relations teams through website, virtual events, CRM and analytics products. The group delivers services primarily over the internet on a subscription basis using the software-as-a-service (SaaS) model. It derives revenue from Canada, the U.S., Europe and Other countries, of which a majority of revenue is derived from the U.S.
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