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Diamondrock Hospitality CoFRA:HBO +2.70%65 Quick Ratio is 0.98 as of Jun. 2026, which is 9% above its 10-year median of 0.90. GuruFocus rates FRA:HBO with a GF Score™ of 65/100 and a GF Value™ of €8.03 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 743 REITs companies, Diamondrock Hospitality Co ranks better than 54.37% on this metric.
Diamondrock Hospitality Co (FRA:HBO) 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.
Diamondrock Hospitality Co Quick Ratio Related Terms
Diamondrock Hospitality Co Quick Ratio Historical Data
* 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 REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co'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.
Diamondrock Hospitality Co Quick Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Quick Ratio falls into.
Diamondrock Hospitality Co 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.
* 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.
Diamondrock Hospitality Co (FRA:HBO) has a Quick Ratio of 0.98 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Diamondrock Hospitality Co and its competitors. This is near median its historical median of 0.90. Over the past decade, Diamondrock Hospitality Co's Quick Ratio has ranged from 0.49 to 1.81. According to the industry distribution chart, Diamondrock Hospitality Co ranks #339 out of 743 companies in the REITs industry, placing it in the top 45.6%.
Is Diamondrock Hospitality Co's Quick Ratio too high?
Diamondrock Hospitality Co's current Quick Ratio of 0.98 is near median its 10-year median of 0.90. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 1.81. The REITs industry median Quick Ratio is 0.87. Diamondrock Hospitality Co's value of 0.98 is 12.6% above this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #339 out of 743 companies in the REITs industry, which is above the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's Quick Ratio compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #339 out of 743 companies for Quick Ratio. This puts Diamondrock Hospitality Co in the upper half of its industry. The industry median Quick Ratio is 0.87. Diamondrock Hospitality Co's value of 0.98 is 12.6% above this benchmark. Historically, Diamondrock Hospitality Co's own Quick Ratio has ranged from 0.49 to 1.81 over the past decade. While the company's 10-year median is 0.90 vs. the industry median of 0.87, Diamondrock Hospitality Co has consistently been above the industry average. 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 REITs company?
The median Quick Ratio among REITs companies is 0.87, based on 743 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. Diamondrock Hospitality Co's current Quick Ratio of 0.98 is 12.6% 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 Diamondrock Hospitality Co and its competitors. For the REITs industry, the median Quick Ratio is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Quick Ratio is 0.98, which is near median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondrock Hospitality Co stock overvalued right now?
Based on GuruFocus' analysis, Diamondrock Hospitality Co (FRA:HBO) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.03, compared to a current price of €11.40 — trading 42% above its estimated fair value. The current Quick Ratio is 0.98, which is near median its 10-year median of 0.90 and 12.6% above the REITs industry median of 0.87. Diamondrock Hospitality Co's overall GF Score™ is 65/100 with 8 warning signs to review. 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 Diamondrock Hospitality Co (FRA:HBO), the current Quick Ratio is 0.98 as of Jun. 2026. 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.
Is Diamondrock Hospitality Co (FRA:HBO) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondrock Hospitality Co stock appears to be overvalued.
The current stock price of €11.40 is trading 42% above its estimated GF Value™ of €8.03.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
Quick Ratio: 0.98 (near median its 10-year median of 0.90)
GF Value™: €8.03 vs. price of €11.40 (42% above fair value)
Industry Position: 12.6% above the REITs median (#339 of 743)
No single metric tells the full story. See the FRA:HBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The company operates in one reportable segment: The hotel ownership segment, which is comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services.
65GF Score
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