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. Digicel Group's quick ratio for the quarter that ended in Mar. 2015 was 1.19.
Digicel Group has a quick ratio of 1.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Digicel Group's Quick Ratio or its related term are showing as below:
DCEL's Quick Ratio is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.06 * Ranked among companies with meaningful Quick Ratio only.
Digicel Group (NYSE:DCEL) 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.
Digicel Group Quick Ratio Related Terms
Digicel Group Quick Ratio Historical Data
* Premium members only.
The historical data trend for Digicel Group'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.
Digicel Group Quick Ratio Chart
Digicel Group Annual Data
Trend
Mar13
Mar14
Mar15
Quick Ratio
0.00
0.60
1.19
Digicel Group Semi-Annual Data
Mar13
Mar14
Mar15
Quick Ratio
0.00
0.60
1.19
DCEL vs DIRV, FULO, TOWTF: Quick Ratio Comparison
For the Telecom Services subindustry, Digicel Group'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.
Digicel Group Quick Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digicel Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Digicel Group'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.
Digicel Group's Quick Ratio for the fiscal year that ended in Mar. 2015 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.
Digicel Group (DCEL) has a Quick Ratio of 1.19 as of Mar. 2015. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Digicel Group and its competitors.
Is Digicel Group's Quick Ratio too high?
Digicel Group's current Quick Ratio is 1.19. The Telecommunication Services industry median Quick Ratio is 1.06. Digicel Group's value of 1.19 is 12.3% above this industry median.
How does Digicel Group's Quick Ratio compare to DIRV and FULO?
Digicel Group's Quick Ratio of 1.19 can be compared against companies in the Telecommunication Services industry. The industry median Quick Ratio is 1.06. Digicel Group's value of 1.19 is 12.3% 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 Telecommunication Services company?
The median Quick Ratio among Telecommunication Services companies is 1.06, based on 371 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. Digicel Group's current Quick Ratio of 1.19 is 12.3% 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 Digicel Group and its competitors. For the Telecommunication Services industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digicel Group's current Quick Ratio is 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current Quick Ratio of 1.19. The current Quick Ratio is 1.19 and 12.3% above the Telecommunication Services industry median of 1.06. 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 Digicel Group (DCEL), the current Quick Ratio is 1.19 as of Mar. 2015. 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.
Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DCEL has been successfully added to your