Family Dollar Stores has a quick ratio of 0.46. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Family Dollar Stores's Quick Ratio or its related term are showing as below:
FRA:FAY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.15 Med: 0.39 Max: 0.72
Current: 0.46
During the past 13 years, Family Dollar Stores's highest Quick Ratio was 0.72. The lowest was 0.15. And the median was 0.39.
FRA:FAY's Quick Ratio is not ranked
in the Retail - Defensive industry.
Industry Median: 0.88
vs FRA:FAY: 0.46
Family Dollar Stores Quick Ratio Historical Data
The historical data trend for Family Dollar Stores'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 Family Dollar Stores's Quick Ratio
For the Discount Stores subindustry, Family Dollar Stores'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.
Family Dollar Stores's Quick Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Family Dollar Stores's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Family Dollar Stores's Quick Ratio falls into.
Family Dollar Stores 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.
Family Dollar Stores's Quick Ratio for the fiscal year that ended in Aug. 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.
Family Dollar Stores (FRA:FAY) 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.
Family Dollar Stores Quick Ratio Related Terms
Thank you for viewing the detailed overview of Family Dollar Stores's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Family Dollar Stores (FRA:FAY) Business Description
Family Dollar Stores Inc was incorporated in November 1959. The Company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary. It operates general merchandise retail discount stores in 46 states, serving the basic needs of customers primarily in the low- and middle-income brackets. The stores are supported by 11 distribution centers and one Store Support Center. It competes for sales and store locations in varying degrees with international, national, regional and local retailing establishments, other discount stores, department stores, variety stores, dollar stores, discount clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other stores. The Company's trademark includes Family Dollar and Family Dollar Stores. Its business is subject to federal, state, local, and international laws, rules, and regulations, such as state and local wage and hour laws, anti-corruption laws, import and export laws, unclaimed property laws, and many others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:FAY has been successfully added to your 