ATAR (Avatar Ventures) Quick Ratio: 1.15 (As of Apr. 2012)


What is Avatar Ventures Quick Ratio?

Avatar Ventures ATAR -99.00% Quick Ratio is 1.15 as of Apr. 2012.

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. Avatar Ventures's quick ratio for the quarter that ended in Apr. 2012 was 1.15.

Avatar Ventures has a quick ratio of 1.15. It generally indicates good short-term financial strength.

The historical rank and industry rank for Avatar Ventures's Quick Ratio or its related term are showing as below:

ATAR's Quick Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.06
* Ranked among companies with meaningful Quick Ratio only.

Avatar Ventures  (OTCPK:ATAR) 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.

Avatar Ventures Quick Ratio Related Terms

Avatar Ventures Quick Ratio Historical Data

* Premium members only.

The historical data trend for Avatar Ventures'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.

Avatar Ventures Quick Ratio Chart

Avatar Ventures Annual Data
Trend Jul08 Jul09 Jul10 Jul11
Quick Ratio
0.13 0.00 0.00 9.29

Avatar Ventures Quarterly Data
Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.23 9.29 4.49 2.23 1.15

ATAR vs PFTI, OMTK, FNHI: Quick Ratio Comparison

For the Auto Parts subindustry, Avatar Ventures'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.

Avatar Ventures Quick Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Avatar Ventures's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Avatar Ventures's Quick Ratio falls into.


Avatar Ventures 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.

Avatar Ventures's Quick Ratio for the fiscal year that ended in Jul. 2011 is calculated as

Quick Ratio (A: Jul. 2011 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(0.288-0)/0.031
=9.29

Avatar Ventures's Quick Ratio for the quarter that ended in Apr. 2012 is calculated as

Quick Ratio (Q: Apr. 2012 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(0.07-0)/0.061
=1.15

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 1.15 mean?
Avatar Ventures (ATAR) has a Quick Ratio of 1.15 as of Apr. 2012. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Avatar Ventures and its competitors.
Is Avatar Ventures' Quick Ratio too high?
Avatar Ventures' current Quick Ratio is 1.15. The Vehicles & Parts industry median Quick Ratio is 1.06. Avatar Ventures' value of 1.15 is 8.5% above this industry median.
How does Avatar Ventures' Quick Ratio compare to PFTI and OMTK?
Avatar Ventures' Quick Ratio of 1.15 can be compared against companies in the Vehicles & Parts industry. The industry median Quick Ratio is 1.06. Avatar Ventures' value of 1.15 is 8.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.06, based on 1,337 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Avatar Ventures's current Quick Ratio of 1.15 is 8.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Avatar Ventures and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avatar Ventures's current Quick Ratio is 1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avatar Ventures stock overvalued right now?
Avatar Ventures (ATAR) has a current Quick Ratio of 1.15. The current Quick Ratio is 1.15 and 8.5% above the Vehicles & Parts industry median of 1.06. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Avatar Ventures (ATAR), the current Quick Ratio is 1.15 as of Apr. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Avatar Ventures Business Description

Address 27281 Las Ramblas, Suite 200, Mission Viejo, CA, USA, 92691
Avatar Ventures Corp intends to be a developer of aftermarket electronic accessories for consumer motor vehicles.