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. Compuware's quick ratio for the quarter that ended in Sep. 2014 was 1.39.
Compuware has a quick ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Compuware's Quick Ratio or its related term are showing as below:
FRA:CWR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.93 Med: 1.74 Max: 2.67
Current: 1.39
During the past 13 years, Compuware's highest Quick Ratio was 2.67. The lowest was 0.93. And the median was 1.74.
FRA:CWR's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.65
vs FRA:CWR: 1.39
Compuware Quick Ratio Historical Data
The historical data trend for Compuware'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 Software - Application subindustry, Compuware'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.
Compuware's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Compuware's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Compuware's Quick Ratio falls into.
Compuware 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.
Compuware's Quick Ratio for the fiscal year that ended in Mar. 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.
Compuware (FRA:CWR) 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.
Compuware Quick Ratio Related Terms
Thank you for viewing the detailed overview of Compuware's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Compuware Corp a Michigan corporation was incorporated in 1973. The Company delivers services and software that enable its customers' important technologies to perform at their peak. It delivers the solutions through software that is installed and run on its customers' owned hardware and applications and through a Software as a Service ('SaaS') model accessed via its hosted networks. It has six business segments: Application Performance Managemen (APM), Mainframe, Changepoint, Uniface, Professional Services and Covisint Application Services ('Covisint'). Its Compuware Application Performance Management ('Compuware APM') consists of its solutions for optimizing the performance of web, non-web, mobile, streaming and cloud applications. Its Mainframe Software Products improve the productivity of development, maintenance and support teams in application analysis, testing, defect detection and remediation, fault management, file and data management, data compliance and application performance management in the IBM z/OS environment. Its Changepoint software combines professional services automation with project portfolio management capabilities to give customers complete visibility into projects, investments and resources for informed business planning and financial control. Its Uniface solution is Compuware's Rapid Application Development environment for building, renewing and integrating some of the complex enterprise applications. Its Covisint application services provide a cloud engagement platform for enabling organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. Its products and services are used by the IT departments and lines of business of a of commercial and government organizations. Its competitors include BMC Software Inc., CA, Inc., International Business Machines ('IBM'), Hewlett-Packard Company, Keynote Systems, Inc., Accenture, Computer Sciences Corporation, HP Enterprise Services, Analysts International Corporation and Infosys Technologies.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:CWR has been successfully added to your 