Education Management has a quick ratio of 1.38. It generally indicates good short-term financial strength.
The historical rank and industry rank for Education Management's Quick Ratio or its related term are showing as below:
EDMCQ's Quick Ratio is not ranked *
in the Education industry.
Industry Median: 1.44 * Ranked among companies with meaningful Quick Ratio only.
Education Management (OTCPK:EDMCQ) 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.
Education Management Quick Ratio Related Terms
Education Management Quick Ratio Historical Data
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The historical data trend for Education Management'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 Education & Training Services subindustry, Education Management'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.
Education Management Quick Ratio vs Education Industry
For the Education industry and Consumer Defensive sector, Education Management's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Education Management'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.
Education Management's Quick Ratio for the fiscal year that ended in Jun. 2014 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.
Education Management (EDMCQ) has a Quick Ratio of 1.38 as of Jun. 2014. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Education Management and its competitors.
Is Education Management's Quick Ratio too high?
Education Management's current Quick Ratio is 1.38. The Education industry median Quick Ratio is 1.44. Education Management's value of 1.38 is 4.2% below this industry median.
How does Education Management's Quick Ratio compare to ZVO?
Education Management's Quick Ratio of 1.38 can be compared against companies in the Education industry. The industry median Quick Ratio is 1.44. Education Management's value of 1.38 is 4.2% below 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 an Education company?
The median Quick Ratio among Education companies is 1.44, based on 261 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. Education Management's current Quick Ratio of 1.38 is 4.2% 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 Education Management and its competitors. For the Education industry, the median Quick Ratio is 1.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Education Management's current Quick Ratio is 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Education Management stock overvalued right now?
Education Management (EDMCQ) has a current Quick Ratio of 1.38. The current Quick Ratio is 1.38 and 4.2% below the Education industry median of 1.44. 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 Education Management (EDMCQ), the current Quick Ratio is 1.38 as of Jun. 2014. 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.
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.
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