Ventia Services Group (ASX:VNT) Quick Ratio : 1.01 (As of Dec. 2023)

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What is Ventia Services Group 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. Ventia Services Group's quick ratio for the quarter that ended in Dec. 2023 was 1.01.

Ventia Services Group has a quick ratio of 1.01. It generally indicates good short-term financial strength.

The historical rank and industry rank for Ventia Services Group's Quick Ratio or its related term are showing as below:

ASX:VNT' s Quick Ratio Range Over the Past 10 Years
Min: 0.78 Med: 0.88 Max: 1.01
Current: 1.01

During the past 3 years, Ventia Services Group's highest Quick Ratio was 1.01. The lowest was 0.78. And the median was 0.88.

ASX:VNT's Quick Ratio is ranked worse than
68.4% of 1677 companies
in the Construction industry
Industry Median: 1.28 vs ASX:VNT: 1.01

Ventia Services Group Quick Ratio Historical Data

The historical data trend for Ventia Services 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.

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Ventia Services Group Quick Ratio Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Quick Ratio

0.78

0.88

1.01

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio	0.78	0.84	0.88	0.95	1.01

Competitive Comparison of Ventia Services Group's Quick Ratio

For the Infrastructure Operations subindustry, Ventia Services 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.

Ventia Services Group's Quick Ratio Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's Quick Ratio falls into.

Ventia Services 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.

Ventia Services Group's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1303.4	-	46.8)	/	1239.2
	=	1.01

Ventia Services Group's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1303.4	-	46.8)	/	1239.2
	=	1.01

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group Quick Ratio Related Terms

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Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Quick Ratio

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.