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. Leonardo DRS's quick ratio for the quarter that ended in Dec. 2024 was 1.62.
Leonardo DRS has a quick ratio of 1.62. It generally indicates good short-term financial strength.
The historical rank and industry rank for Leonardo DRS's Quick Ratio or its related term are showing as below:
DRS'
s Quick Ratio Range Over the Past 10 Years
Min: 1.04 Med: 1.27 Max: 1.62
Current: 1.62
During the past 7 years, Leonardo DRS's highest Quick Ratio was 1.62. The lowest was 1.04. And the median was 1.27.
DRS's Quick Ratio is ranked better than 64.37% of 320
companies
in the Aerospace & Defense industry
Industry Median: 1.255
vs DRS: 1.62
Leonardo DRS Quick Ratio Historical Data
The historical data trend for Leonardo DRS'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.
Competitive Comparison of Leonardo DRS's Quick Ratio
For the Aerospace & Defense subindustry, Leonardo DRS'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.
Leonardo DRS's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Leonardo DRS'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.
Leonardo DRS's Quick Ratio for the fiscal year that ended in Dec. 2024 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.
Leonardo DRS (NAS:DRS) 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.
Leonardo DRS Quick Ratio Related Terms
Thank you for viewing the detailed overview of Leonardo DRS's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. The company is in the design, development, and manufacture of Advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. The company has two segments: Advanced Sensing and Computing, which generates the majority of revenue, and the Integrated Mission Systems segment. The Advanced Sensing and Computing segment is engaged in designing, developing, and manufacturing sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution by the customers.
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