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AVDX (AvidXchange Holdings) Quick Ratio : 1.32 (As of Sep. 2024)


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What is AvidXchange Holdings 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. AvidXchange Holdings's quick ratio for the quarter that ended in Sep. 2024 was 1.32.

AvidXchange Holdings has a quick ratio of 1.32. It generally indicates good short-term financial strength.

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

AVDX' s Quick Ratio Range Over the Past 10 Years
Min: 1.12   Med: 1.35   Max: 3.09
Current: 1.32

During the past 5 years, AvidXchange Holdings's highest Quick Ratio was 3.09. The lowest was 1.12. And the median was 1.35.

AVDX's Quick Ratio is ranked worse than
60.73% of 2824 companies
in the Software industry
Industry Median: 1.64 vs AVDX: 1.32

AvidXchange Holdings Quick Ratio Historical Data

The historical data trend for AvidXchange Holdings'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.

AvidXchange Holdings Quick Ratio Chart

AvidXchange Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
3.09 2.03 1.39 1.30 1.25

AvidXchange Holdings Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.32 1.25 1.34 1.36 1.32

Competitive Comparison of AvidXchange Holdings's Quick Ratio

For the Software - Infrastructure subindustry, AvidXchange Holdings'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.


AvidXchange Holdings's Quick Ratio Distribution in the Software Industry

For the Software industry and Technology sector, AvidXchange Holdings's Quick Ratio distribution charts can be found below:

* The bar in red indicates where AvidXchange Holdings's Quick Ratio falls into.



AvidXchange Holdings 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.

AvidXchange Holdings'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
=(2098.778-0)/1672.876
=1.25

AvidXchange Holdings's Quick Ratio for the quarter that ended in Sep. 2024 is calculated as

Quick Ratio (Q: Sep. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1631.306-0)/1237.45
=1.32

* 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.


AvidXchange Holdings  (NAS:AVDX) 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.


AvidXchange Holdings Quick Ratio Related Terms

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AvidXchange Holdings Business Description

Traded in Other Exchanges
N/A
Address
1210 AvidXchange Lane, Charlotte, NC, USA, 28206
AvidXchange Holdings Inc is a provider of AP automation software and payment solutions for middle-market businesses and their suppliers. It generates the majority of its sales from Payment revenue followed by Software revenue and Services revenue. The company generates revenue in the United States.
Executives
Michael Praeger director, officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Angelic Gibson officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Todd Alan Cunningham officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Joel Wilhite officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Daniel Drees officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Ryan Stahl officer: See Remarks 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Matthew C Harris director, 10 percent owner 1 BANK STREET, 2ND FLOOR, WILLIAMSTOWN MA 01267
James E Hausman director 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Sonali Sambhus director C/O AVIDXCHANGE HOLDINGS, INC., 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Asif Ramji director 3399 PEACHTREE ROAD NE, SUITE 1900, ATLANTA GA 30326
Bain Capital Venture Partners 2014, L.p. 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Teresa Mackintosh director 1210 AVIDXCHANGE LANE, CHARLOTTE NC 28206
Bcv Ax Investors, L.p. 10 percent owner 200 CLARENDON ST, BOSTON MA 02116
Bain Capital Venture Coinvestment Partners, L.p. 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Bain Capital Venture Coinvestment Fund, L.p. 10 percent owner JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116