ArcLight Clean Transition (ArcLight Clean Transition) Quick Ratio : 0.29 (As of Jul. 2020)

View and export this data going back to 2020. Start your Free Trial

What is ArcLight Clean Transition Quick Ratio?

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. ArcLight Clean Transition's quick ratio for the quarter that ended in Jul. 2020 was 0.29.

ArcLight Clean Transition has a quick ratio of 0.29. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for ArcLight Clean Transition's Quick Ratio or its related term are showing as below:

ACTC's Quick Ratio is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: 1.16
* Ranked among companies with meaningful Quick Ratio only.

ArcLight Clean Transition Quick Ratio Historical Data

The historical data trend for ArcLight Clean Transition'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.

* Premium members only.

ArcLight Clean Transition Quick Ratio Chart

ArcLight Clean Transition Annual Data

Trend

Dec20

Quick Ratio

1.06

ArcLight Clean Transition Semi-Annual Data
	Jul20
Quick Ratio	0.29

Competitive Comparison of ArcLight Clean Transition's Quick Ratio

For the Shell Companies subindustry, ArcLight Clean Transition'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.

ArcLight Clean Transition's Quick Ratio Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, ArcLight Clean Transition's Quick Ratio distribution charts can be found below:

* The bar in red indicates where ArcLight Clean Transition's Quick Ratio falls into.

ArcLight Clean Transition 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.

ArcLight Clean Transition's Quick Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1.278	-	0)	/	1.208
	=	1.06

ArcLight Clean Transition's Quick Ratio for the quarter that ended in Jul. 2020 is calculated as

Quick Ratio (Q: Jul. 2020 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(0.013	-	0)	/	0.045
	=	0.29

ArcLight Clean Transition (NAS:ACTC) 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.

ArcLight Clean Transition Quick Ratio Related Terms

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