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. Transat AT's quick ratio for the quarter that ended in Jan. 2024 was 0.85.
Transat AT has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Transat AT's Quick Ratio or its related term are showing as below:
FRA:1TJ'
s Quick Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.04 Max: 1.5
Current: 0.85
During the past 13 years, Transat AT's highest Quick Ratio was 1.50. The lowest was 0.76. And the median was 1.04.
FRA:1TJ's Quick Ratio is ranked worse than 61.67% of 840
companies
in the Travel & Leisure industry
Industry Median: 1.11
vs FRA:1TJ: 0.85
Transat AT Quick Ratio Historical Data
The historical data trend for Transat AT'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 Transat AT's Quick Ratio
For the Travel Services subindustry, Transat AT'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.
Transat AT's Quick Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Transat AT's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Transat AT's Quick Ratio falls into.
Transat AT 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.
Transat AT's Quick Ratio for the fiscal year that ended in Oct. 2023 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.
Transat AT (FRA:1TJ) 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.
Transat AT Quick Ratio Related Terms
Thank you for viewing the detailed overview of Transat AT's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Transat A.T. Inc is a Canadian company that specializes in the organization, marketing, and distribution of holiday travel in the tourism industry. The company offers vacation packages, hotel stays, and air travel under the Transat and Air Transat brands. The company's core business consists of a Canadian leisure airline based in Canada that is vertically integrated with its other services of holiday packages, distribution through a dynamic travel agency network, value-added services at travel destinations, and accommodations. Its geographical segments include the Transatlantic, Americas, and others. It operates in one segment namely holiday travel.
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