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Melco International Development (FRA:MX7A) 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.
Melco International Development Quick Ratio Related Terms
Melco International Development 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.
FRA:MX7A vs LVS, MGM, WYNN: Quick Ratio Comparison
For the Resorts & Casinos subindustry, Melco International Development'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.
Melco International Development Quick Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco International Development's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Melco International Development's Quick Ratio falls into.
Melco International Development 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.
Melco International Development (FRA:MX7A) has a Quick Ratio of 1.06 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Melco International Development and its competitors. This is 11% below median its historical median of 1.19. Over the past decade, Melco International Development's Quick Ratio has ranged from 0.59 to 2.35. According to the industry distribution chart, Melco International Development ranks #448 out of 856 companies in the Travel & Leisure industry, placing it in the top 52.3%.
Is Melco International Development's Quick Ratio too high?
Melco International Development's current Quick Ratio of 1.06 is 11% below median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.59 to a high of 2.35. The Travel & Leisure industry median Quick Ratio is 1.15. Melco International Development's value of 1.06 is 7.8% below this industry median. Based on the distribution chart, Melco International Development ranks #448 out of 856 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Melco International Development has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Melco International Development's Quick Ratio compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco International Development ranks #448 out of 856 companies for Quick Ratio. This places Melco International Development in the lower half of its industry. The industry median Quick Ratio is 1.15. Melco International Development's value of 1.06 is 7.8% below this benchmark. Historically, Melco International Development's own Quick Ratio has ranged from 0.59 to 2.35 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 1.15, Melco International Development has consistently been below 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 Travel & Leisure company?
The median Quick Ratio among Travel & Leisure companies is 1.15, based on 856 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. Melco International Development's current Quick Ratio of 1.06 is 7.8% below 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 Melco International Development and its competitors. For the Travel & Leisure industry, the median Quick Ratio is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco International Development's current Quick Ratio is 1.06, which is 11% below median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco International Development stock overvalued right now?
Melco International Development (FRA:MX7A) has a current Quick Ratio of 1.06. The stock's GF Value™ is €0.48, compared to a current price of €0.36 — trading 25.4% below its estimated fair value. The current Quick Ratio is 1.06, which is 11% below median its 10-year median of 1.19 and 7.8% below the Travel & Leisure industry median of 1.15. Melco International Development's overall GF Score™ is 82/100 with 7 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 Melco International Development (FRA:MX7A), the current Quick Ratio is 1.06 as of Dec. 2025. 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 Melco International Development (FRA:MX7A) Overvalued in 2026?
Based on GuruFocus' analysis, Melco International Development stock appears to be undervalued.
The current stock price of €0.36 is trading 25.4% below its estimated GF Value™ of €0.48.
Key valuation signals for FRA:MX7A:
Quick Ratio: 1.06 (11% below median its 10-year median of 1.19)
GF Value™: €0.48 vs. price of €0.36 (25.4% below fair value)
Industry Position: 7.8% below the Travel & Leisure median (#448 of 856)
No single metric tells the full story. See the FRA:MX7A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco International Development Ltd is a developer, owner, and operator of an international network of casino gaming and entertainment resorts. Its segments are the Casino and Hospitality segment, which generates maximum revenue, comprises the operation of casinos and the provision of hospitality services and facilities through Melco Resorts. Its resorts and properties include City of Dreams Cotai, Altira Macau, and Mocha Clubs in Macau; City of Dreams Manila in the Philippines; and City of Dreams Mediterranean and Cyprus Casinos in Cyprus. The Other segment comprises investments in a joint venture and associates, and other activities. Its operations are mainly located in Macau, the Philippines, Cyprus, and other regions, with maximum revenue derived from Macau.
82GF Score
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