ESWW (Environmental Solutions Worldwide) Quick Ratio: 2.39 (As of Dec. 2014)


What is Environmental Solutions Worldwide Quick Ratio?

Environmental Solutions Worldwide ESWW Quick Ratio is 2.39 as of Dec. 2014.

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. Environmental Solutions Worldwide's quick ratio for the quarter that ended in Dec. 2014 was 2.39.

Environmental Solutions Worldwide has a quick ratio of 2.39. It generally indicates good short-term financial strength.

The historical rank and industry rank for Environmental Solutions Worldwide's Quick Ratio or its related term are showing as below:

ESWW's Quick Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.06
* Ranked among companies with meaningful Quick Ratio only.

Environmental Solutions Worldwide  (OTCPK:ESWW) 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.


Environmental Solutions Worldwide Quick Ratio Related Terms


Environmental Solutions Worldwide Quick Ratio Historical Data

* Premium members only.

The historical data trend for Environmental Solutions Worldwide'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.

Environmental Solutions Worldwide Quick Ratio Chart

Environmental Solutions Worldwide Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.28 1.07 0.82 1.47 2.39

Environmental Solutions Worldwide Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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 1.47 1.76 2.35 2.25 2.39

ESWW vs STCC, FNHI, PFTI: Quick Ratio Comparison

For the Auto Parts subindustry, Environmental Solutions Worldwide'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.


Environmental Solutions Worldwide Quick Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Environmental Solutions Worldwide's Quick Ratio falls into.



Environmental Solutions Worldwide 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.

Environmental Solutions Worldwide's Quick Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Quick Ratio (A: Dec. 2014 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(16.43-4.463)/4.999
=2.39

Environmental Solutions Worldwide's Quick Ratio for the quarter that ended in Dec. 2014 is calculated as

Quick Ratio (Q: Dec. 2014 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(16.43-4.463)/4.999
=2.39

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 2.39 mean?
Environmental Solutions Worldwide (ESWW) has a Quick Ratio of 2.39 as of Dec. 2014. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Environmental Solutions Worldwide and its competitors.
Is Environmental Solutions Worldwide's Quick Ratio too high?
Environmental Solutions Worldwide's current Quick Ratio is 2.39. The Vehicles & Parts industry median Quick Ratio is 1.06. Environmental Solutions Worldwide's value of 2.39 is 125.5% above this industry median.
How does Environmental Solutions Worldwide's Quick Ratio compare to STCC and FNHI?
Environmental Solutions Worldwide's Quick Ratio of 2.39 can be compared against companies in the Vehicles & Parts industry. The industry median Quick Ratio is 1.06. Environmental Solutions Worldwide's value of 2.39 is 125.5% 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 Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.06, based on 1,337 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. Environmental Solutions Worldwide's current Quick Ratio of 2.39 is 125.5% 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 Environmental Solutions Worldwide and its competitors. For the Vehicles & Parts 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. Environmental Solutions Worldwide's current Quick Ratio is 2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Environmental Solutions Worldwide stock overvalued right now?
Environmental Solutions Worldwide (ESWW) has a current Quick Ratio of 2.39. The current Quick Ratio is 2.39 and 125.5% above the Vehicles & Parts 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 Environmental Solutions Worldwide (ESWW), the current Quick Ratio is 2.39 as of Dec. 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.

Environmental Solutions Worldwide Business Description

Address 200 Progress Drive, Montgomerville, PA, USA, 18936
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.