Cyxtera Technologies has a quick ratio of 0.43. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Cyxtera Technologies's Quick Ratio or its related term are showing as below:
CYXTW'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.44 Max: 1.07
Current: 0.43
During the past 3 years, Cyxtera Technologies's highest Quick Ratio was 1.07. The lowest was 0.35. And the median was 0.44.
CYXTW's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.7
vs CYXTW: 0.43
Cyxtera Technologies (NAS:CYXTW) 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.
Cyxtera Technologies Quick Ratio Related Terms
Cyxtera Technologies Quick Ratio Historical Data
* Premium members only.
The historical data trend for Cyxtera Technologies'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, Cyxtera Technologies'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.
Cyxtera Technologies Quick Ratio vs Software Industry
For the Software industry and Technology sector, Cyxtera Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cyxtera Technologies'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.
Cyxtera Technologies's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Cyxtera Technologies (CYXTW) has a Quick Ratio of 0.43 as of Mar. 2023. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Cyxtera Technologies and its competitors. This is near median its historical median of 0.44. Over the past decade, Cyxtera Technologies' Quick Ratio has ranged from 0.35 to 1.07.
Is Cyxtera Technologies' Quick Ratio too high?
Cyxtera Technologies' current Quick Ratio of 0.43 is near median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 1.07. The Software industry median Quick Ratio is 1.70. Cyxtera Technologies' value of 0.43 is 74.7% below this industry median. Overall, Cyxtera Technologies has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Cyxtera Technologies' Quick Ratio compare to FCCN and GTCH?
Cyxtera Technologies' Quick Ratio of 0.43 can be compared against companies in the Software industry. The industry median Quick Ratio is 1.70. Cyxtera Technologies' value of 0.43 is 74.7% below this benchmark. Historically, Cyxtera Technologies' own Quick Ratio has ranged from 0.35 to 1.07 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 1.70, Cyxtera Technologies has consistently been below 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 Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,862 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. Cyxtera Technologies's current Quick Ratio of 0.43 is 74.7% below 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 Cyxtera Technologies and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cyxtera Technologies's current Quick Ratio is 0.43, which is near median its own 10-year median of 0.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cyxtera Technologies stock overvalued right now?
Cyxtera Technologies (CYXTW) has a current Quick Ratio of 0.43. The current Quick Ratio is 0.43, which is near median its 10-year median of 0.44 and 74.7% below the Software industry median of 1.70. Cyxtera Technologies' overall GF Score™ is 16/100 with 2 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 Cyxtera Technologies (CYXTW), the current Quick Ratio is 0.43 as of Mar. 2023. 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.
Cyxtera Technologies Inc is engaged in data center colocation and interconnection services. The company operates a footprint of more than 60 data centers around the world, providing services to more than 2,300 leading enterprises and U.S. federal government agencies. Cyxtera brings proven operational excellence, global scale, flexibility and customer-focused innovation together to provide a comprehensive portfolio of data center and interconnection services.
16GF Score
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