Furniture Brands International, (FRA:FBN1) Quick Ratio : 0.81 (As of Jun. 2013)

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What is Furniture Brands International, Quick Ratio?

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. Furniture Brands International,'s quick ratio for the quarter that ended in Jun. 2013 was 0.81.

Furniture Brands International, has a quick ratio of 0.81. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Furniture Brands International,'s Quick Ratio or its related term are showing as below:

FRA:FBN1's Quick Ratio is not ranked ^*
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 1.15
* Ranked among companies with meaningful Quick Ratio only.

Furniture Brands International, Quick Ratio Historical Data

The historical data trend for Furniture Brands International,'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.

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Furniture Brands International, Quick Ratio Chart

Furniture Brands International, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Quick Ratio

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1.48

1.57

1.26

1.03

0.86

Furniture Brands International, Quarterly Data
	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Quick Ratio	Get a 7-Day Free Trial															0.88	0.76	0.86	0.84	0.81

Competitive Comparison of Furniture Brands International,'s Quick Ratio

For the Furnishings, Fixtures & Appliances subindustry, Furniture Brands International,'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.

Furniture Brands International,'s Quick Ratio Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Furniture Brands International,'s Quick Ratio distribution charts can be found below:

* The bar in red indicates where Furniture Brands International,'s Quick Ratio falls into.

Furniture Brands International, 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.

Furniture Brands International,'s Quick Ratio for the fiscal year that ended in Dec. 2012 is calculated as

Quick Ratio (A: Dec. 2012 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(299.64	-	186.182)	/	131.316
	=	0.86

Furniture Brands International,'s Quick Ratio for the quarter that ended in Jun. 2013 is calculated as

Quick Ratio (Q: Jun. 2013 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(268.883	-	171.716)	/	119.691
	=	0.81

Furniture Brands International, (FRA:FBN1) 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.

Furniture Brands International, Quick Ratio Related Terms

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Furniture Brands International, Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Furniture Brands International, Inc. (FRA:FBN1) » Definitions » Quick Ratio

Traded in Other Exchanges

N/A

Address

Website

http://www.furniturebrands.com

Furniture Brands International, Inc., is a Delaware corporation, which was organized in 1921 as a holding company. The Company is engaged in designing, manufacturing, sourcing and retailing of home furnishings. It markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Its portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. Through these brands, the Company offers case goods, consisting of bedroom, dining room, and living room wood furniture; stationary upholstery products, consisting of sofas, loveseats, sectionals, and chairs; motion upholstered furniture, consisting of recliners and sleep sofas; occasional furniture, consisting of wood, metal and glass tables, accent pieces, home entertainment centers, and home office furniture; and decorative accessories and accent pieces. The Company's brands are featured in every price and product category in the residential furniture industry. Each of its brands targets specific customers in relation to style and price point. The raw materials used in manufacturing its products include lumber, veneers, plywood, fiberboard, particleboard, steel, paper, hardware, adhesives, finishing materials, glass, mirrored glass, fabrics, leathers, metals, stone, synthetics and upholstered filling material. The Company's products compete against domestic manufacturers, importers, and foreign manufacturers entering the United States market; as well as increased direct importing by some larger retailers. Its competitors include: Ashley Furniture Industries, Inc.; La-Z-Boy Incorporated; Ethan Allen Interiors Inc., and many other home furnishings retailers and manufacturers. The elements of competition include price, style, quality, service, brand and marketing.

Furniture Brands International, Headlines

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