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DCHIY (Digital China Holdings) Quick Ratio : 1.41 (As of Jun. 2024)


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What is Digital China Holdings Quick Ratio?

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. Digital China Holdings's quick ratio for the quarter that ended in Jun. 2024 was 1.41.

Digital China Holdings has a quick ratio of 1.41. It generally indicates good short-term financial strength.

The historical rank and industry rank for Digital China Holdings's Quick Ratio or its related term are showing as below:

DCHIY' s Quick Ratio Range Over the Past 10 Years
Min: 0.85   Med: 1.17   Max: 1.41
Current: 1.41

During the past 13 years, Digital China Holdings's highest Quick Ratio was 1.41. The lowest was 0.85. And the median was 1.17.

DCHIY's Quick Ratio is ranked better than
62.43% of 551 companies
in the Conglomerates industry
Industry Median: 1.13 vs DCHIY: 1.41

Digital China Holdings Quick Ratio Historical Data

The historical data trend for Digital China Holdings'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.

* Premium members only.

Digital China Holdings Quick Ratio Chart

Digital China Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.00 1.16 1.22 1.34 1.41

Digital China Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.31 1.34 1.41 1.41 1.41

Competitive Comparison of Digital China Holdings's Quick Ratio

For the Conglomerates subindustry, Digital China Holdings'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.


Digital China Holdings's Quick Ratio Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Digital China Holdings's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Digital China Holdings's Quick Ratio falls into.



Digital China Holdings Quick Ratio Calculation

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.

Digital China Holdings's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1926.012-114.875)/1285.795
=1.41

Digital China Holdings's Quick Ratio for the quarter that ended in Jun. 2024 is calculated as

Quick Ratio (Q: Jun. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1776.488-113.177)/1183.773
=1.41

* 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.


Digital China Holdings  (OTCPK:DCHIY) 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.


Digital China Holdings Quick Ratio Related Terms

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Digital China Holdings Business Description

Address
77-79 Gloucester Road, 31st Floor, Fortis Tower, Wanchai, Hong Kong, HKG
Digital China Holdings Ltd is a holding company that through its subsidiaries provides information technology services. The company organizes itself into three primary segments based on the services provided. such as The Big Data Products and Solutions business segment, The Software and Operating Services business segment, and The Traditional and Localization Services business segment. The company generates the majority of its revenue from the Traditional and Localization Services segment.

Digital China Holdings Headlines