Blue Gem Enterprise has a quick ratio of 2.25. It generally indicates good short-term financial strength.
The historical rank and industry rank for Blue Gem Enterprise's Quick Ratio or its related term are showing as below:
BGEM's Quick Ratio is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 1.295 * Ranked among companies with meaningful Quick Ratio only.
Blue Gem Enterprise (OTCPK:BGEM) 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.
Blue Gem Enterprise Quick Ratio Related Terms
Blue Gem Enterprise Quick Ratio Historical Data
* Premium members only.
The historical data trend for Blue Gem Enterprise'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.
For the Beverages - Non-Alcoholic subindustry, Blue Gem Enterprise'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.
Blue Gem Enterprise Quick Ratio vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Blue Gem Enterprise's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Blue Gem Enterprise's Quick Ratio falls into.
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.
Blue Gem Enterprise's Quick Ratio for the fiscal year that ended in May. 2010 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.
Blue Gem Enterprise (BGEM) has a Quick Ratio of 2.25 as of Aug. 2010. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Blue Gem Enterprise and its competitors.
Is Blue Gem Enterprise's Quick Ratio too high?
Blue Gem Enterprise's current Quick Ratio is 2.25. The Beverages - Non-Alcoholic industry median Quick Ratio is 1.30. Blue Gem Enterprise's value of 2.25 is 73.7% above this industry median.
How does Blue Gem Enterprise's Quick Ratio compare to BEVS and MOJO?
Blue Gem Enterprise's Quick Ratio of 2.25 can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Quick Ratio is 1.30. Blue Gem Enterprise's value of 2.25 is 73.7% 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 Beverages - Non-Alcoholic company?
The median Quick Ratio among Beverages - Non-Alcoholic companies is 1.30, based on 118 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. Blue Gem Enterprise's current Quick Ratio of 2.25 is 73.7% 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 Blue Gem Enterprise and its competitors. For the Beverages - Non-Alcoholic industry, the median Quick Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Gem Enterprise's current Quick Ratio is 2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Gem Enterprise stock overvalued right now?
Blue Gem Enterprise (BGEM) has a current Quick Ratio of 2.25. The current Quick Ratio is 2.25 and 73.7% above the Beverages - Non-Alcoholic industry median of 1.30. 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 Blue Gem Enterprise (BGEM), the current Quick Ratio is 2.25 as of Aug. 2010. 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.
Blue Gem Enterprise focuses on operating as a full-service direct store beverage distribution company. The company expects to manage and distribute select allied brands with beverage manufacturers. It is competing in all areas of the non-alcoholic beverage industry including; ice teas, juices, waters, shots, carbonated soft drinks, and more.
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