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Youdao Current Ratio

: 0.74 (As of Jun. 2021)
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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Youdao's current ratio for the quarter that ended in Jun. 2021 was 0.74.

Youdao has a current ratio of 0.74. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Youdao has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

The historical rank and industry rank for Youdao's Current Ratio or its related term are showing as below:

NYSE:DAO' s Current Ratio Range Over the Past 10 Years
Min: 0.13   Med: 0.63   Max: 1.15
Current: 0.74

0.13
1.15

During the past 4 years, Youdao's highest Current Ratio was 1.15. The lowest was 0.13. And the median was 0.63.

NYSE:DAO's Current Ratio is ranked lower than
99.99% of the 76 Companies
in the Interactive Media industry.

( Industry Median: 2.29 vs. NYSE:DAO: 0.74 )

Youdao Current Ratio Historical Data

The historical data trend for Youdao's Current 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.

Youdao Annual Data
Trend Dec17 Dec18 Dec19 Dec20
Current Ratio
0.13 0.46 1.15 0.55

Youdao Quarterly Data
Dec17 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.94 0.63 0.55 0.89 0.74

Competitive Comparison

For the Internet Content & Information subindustry, Youdao's Current Ratio, along with its competitors' market caps and Current 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.

   

Youdao Current Ratio Distribution

For the Interactive Media industry and Communication Services sector, Youdao's Current Ratio distribution charts can be found below:

* The bar in red indicates where Youdao's Current Ratio falls into.



Youdao Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Youdao's Current Ratio for the fiscal year that ended in Dec. 2020

Current Ratio (A: Dec. 2020 )=Total Current Assets (A: Dec. 2020 )/Total Current Liabilities (A: Dec. 2020 )
=283.14437325096/518.94927591638
=0.55

Youdao's Current Ratio for the quarter that ended in Jun. 2021 is calculated as

Current Ratio (Q: Jun. 2021 )=Total Current Assets (Q: Jun. 2021 )/Total Current Liabilities (Q: Jun. 2021 )
=416.47688715953/559.64155642023
=0.74

* 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.


Youdao  (NYSE:DAO) Current Ratio Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


Youdao Current Ratio Related Terms

Thank you for viewing the detailed overview of Youdao's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Youdao Business Description

Youdao logo
Industry
Traded in Other Exchanges
Address
No. 399, Wangshang Road, Binjiang District, Hangzhou, CHN, 310051
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Learning products, and Online marketing services. Nearly half of its revenues come from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as Youdao Dictionary Pen and Youdao Pocket Translator. It generates revenues from the online marketing services through the provision of different formats of advertisement, including but not limited to banners, text links, videos, logos, buttons, and rich media.

Youdao Headlines

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