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. NTT DOCOMO's quick ratio for the quarter that ended in Sep. 2020 was 1.75.
NTT DOCOMO has a quick ratio of 1.75. It generally indicates good short-term financial strength.
The historical rank and industry rank for NTT DOCOMO's Quick Ratio or its related term are showing as below:
BUE:DCM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.81 Med: 1.73 Max: 2.37
Current: 1.75
During the past 13 years, NTT DOCOMO's highest Quick Ratio was 2.37. The lowest was 0.81. And the median was 1.73.
BUE:DCM's Quick Ratio is not ranked
in the Telecommunication Services industry.
Industry Median: 1.05
vs BUE:DCM: 1.75
NTT DOCOMO (BUE:DCM) 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.
NTT DOCOMO Quick Ratio Related Terms
NTT DOCOMO Quick Ratio Historical Data
* Premium members only.
The historical data trend for NTT DOCOMO'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 Telecom Services subindustry, NTT DOCOMO'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.
NTT DOCOMO Quick Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's Quick Ratio distribution charts can be found below:
* The bar in red indicates where NTT DOCOMO'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.
NTT DOCOMO's Quick Ratio for the fiscal year that ended in Mar. 2020 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.
NTT DOCOMO (BUE:DCM) has a Quick Ratio of 1.75 as of Sep. 2020. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on NTT DOCOMO and its competitors. This is near median its historical median of 1.73. Over the past decade, NTT DOCOMO's Quick Ratio has ranged from 0.81 to 2.37.
Is NTT DOCOMO's Quick Ratio too high?
NTT DOCOMO's current Quick Ratio of 1.75 is near median its 10-year median of 1.73. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 2.37. The Telecommunication Services industry median Quick Ratio is 1.05. NTT DOCOMO's value of 1.75 is 66.7% above this industry median. Overall, NTT DOCOMO has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does NTT DOCOMO's Quick Ratio compare to VZ and T?
NTT DOCOMO's Quick Ratio of 1.75 can be compared against companies in the Telecommunication Services industry. The industry median Quick Ratio is 1.05. NTT DOCOMO's value of 1.75 is 66.7% above this benchmark. Historically, NTT DOCOMO's own Quick Ratio has ranged from 0.81 to 2.37 over the past decade. While the company's 10-year median is 1.73 vs. the industry median of 1.05, NTT DOCOMO has consistently been above the industry average. 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 Telecommunication Services company?
The median Quick Ratio among Telecommunication Services companies is 1.05, based on 369 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. NTT DOCOMO's current Quick Ratio of 1.75 is 66.7% 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 NTT DOCOMO and its competitors. For the Telecommunication Services industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT DOCOMO's current Quick Ratio is 1.75, which is near median its own 10-year median of 1.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT DOCOMO stock overvalued right now?
NTT DOCOMO (BUE:DCM) has a current Quick Ratio of 1.75. The current Quick Ratio is 1.75, which is near median its 10-year median of 1.73 and 66.7% above the Telecommunication Services industry median of 1.05. NTT DOCOMO's overall GF Score™ is 10/100 with 5 warning signs to review. 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 NTT DOCOMO (BUE:DCM), the current Quick Ratio is 1.75 as of Sep. 2020. 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.
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.
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