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. Ava Risk Group's quick ratio for the quarter that ended in Dec. 2023 was 1.59.
Ava Risk Group has a quick ratio of 1.59. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ava Risk Group's Quick Ratio or its related term are showing as below:
ASX:AVA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.13 Med: 2.92 Max: 13.22
Current: 1.59
During the past 9 years, Ava Risk Group's highest Quick Ratio was 13.22. The lowest was 1.13. And the median was 2.92.
ASX:AVA's Quick Ratio is ranked better than 51.71% of 1083
companies
in the Business Services industry
Industry Median: 1.54
vs ASX:AVA: 1.59
Ava Risk Group Quick Ratio Historical Data
The historical data trend for Ava Risk Group'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 Ava Risk Group's Quick Ratio
For the Security & Protection Services subindustry, Ava Risk Group'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.
Ava Risk Group's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Ava Risk Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ava Risk Group's Quick Ratio falls into.
Ava Risk Group 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.
Ava Risk Group's Quick Ratio for the fiscal year that ended in Jun. 2023 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.
Ava Risk Group (ASX:AVA) 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.
Ava Risk Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ava Risk Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ava Risk Group Ltd is engaged in risk management services and technologies. The Group operates in Detect, Access, and Illuminate, which are its reportable segments. The group provides a range of complementary solutions such as intrusion detection and location for perimeters, pipelines and data networks, biometric and card access control as well to provide secure international logistics of high-risk valuables, precious metals & currency. Its geographical areas include Australia, Asia Pacific, India, Middle East & North Africa, Europe, the United States, and the Rest of the world.
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