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Info-Drive Software (BOM:530703) 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.
Info-Drive Software Quick Ratio Related Terms
Info-Drive Software Quick Ratio Historical Data
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The historical data trend for Info-Drive Software'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 Information Technology Services subindustry, Info-Drive Software'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.
Info-Drive Software Quick Ratio vs Software Industry
For the Software industry and Technology sector, Info-Drive Software's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Info-Drive Software'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.
Info-Drive Software's Quick Ratio for the fiscal year that ended in Mar. 2017 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.
Info-Drive Software (BOM:530703) has a Quick Ratio of 24.32 as of Mar. 2017. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Info-Drive Software and its competitors.
Is Info-Drive Software's Quick Ratio too high?
Info-Drive Software's current Quick Ratio is 24.32. The Software industry median Quick Ratio is 1.66. Info-Drive Software's value of 24.32 is 1365.1% above this industry median.
How does Info-Drive Software's Quick Ratio compare to IMCI?
Info-Drive Software's Quick Ratio of 24.32 can be compared against companies in the Software industry. The industry median Quick Ratio is 1.66. Info-Drive Software's value of 24.32 is 1365.1% 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 Software company?
The median Quick Ratio among Software companies is 1.66, based on 2,874 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. Info-Drive Software's current Quick Ratio of 24.32 is 1365.1% 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 Info-Drive Software and its competitors. For the Software industry, the median Quick Ratio is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Info-Drive Software's current Quick Ratio is 24.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Info-Drive Software stock overvalued right now?
Info-Drive Software (BOM:530703) has a current Quick Ratio of 24.32. The current Quick Ratio is 24.32 and 1365.1% above the Software industry median of 1.66. 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 Info-Drive Software (BOM:530703), the current Quick Ratio is 24.32 as of Mar. 2017. 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.
Info-Drive Software Ltd is an India-based company. The company is predominantly engaged in outsourcing business solutions from overseas markets, software development, infrastructure management services, systems integration, and trading of commodities. In addition, the company also provides turnkey system solutions, hardware optimization, and data center maintenance. The company product portfolio includes services like Enterprise business intelligence solutions; Consulting services and, Business process outsourcing. The majority of its revenue is generated from the Overseas market while it also has a presence in the Indian market.
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