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. Planar Systems's quick ratio for the quarter that ended in Jun. 2015 was 1.39.
Planar Systems has a quick ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Planar Systems's Quick Ratio or its related term are showing as below:
FRA:PL4'
s Quick Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.68 Max: 4.75
Current: 1.39
During the past 13 years, Planar Systems's highest Quick Ratio was 4.75. The lowest was 0.76. And the median was 1.68.
FRA:PL4's Quick Ratio is not ranked
in the Hardware industry.
Industry Median: 1.47
vs FRA:PL4: 1.39
Planar Systems Quick Ratio Historical Data
The historical data trend for Planar Systems'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 Planar Systems's Quick Ratio
For the Electronic Components subindustry, Planar Systems'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.
Planar Systems's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Planar Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Planar Systems's Quick Ratio falls into.
Planar Systems 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.
Planar Systems's Quick Ratio for the fiscal year that ended in Sep. 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.
Planar Systems (FRA:PL4) 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.
Planar Systems Quick Ratio Related Terms
Thank you for viewing the detailed overview of Planar Systems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Planar Systems Inc was incorporated on April 27, 1983. The Company is a provider of specialty display products, solutions, and services for customers in a number of end-market segments. Products include display components, completed displays, and display solutions and systems based on a variety of flat panel and front- and rear-projection technologies. The Company capitalizes on its strong supply chain, logistics, and distribution relationships to sell a variety of mainly LCD based displays to the United States marketplace. The Company offers High-End Home Display which offers various high-performance home theater front-projection systems, video processing equipment, large-format thin displays, and accessories, that aims at the high-end home market and certain commercial installations The Company employs sales professionals in many countries around the world and sells both directly to end users and through reseller channels.The Company's direct competitors are numerous and diverse. In display systems including AMLCD components sourced from manufacturers, Planar's value-added specialty display products compete against those of NEC, Acer, Viewsonic, Dell and others in the IT market. The Company's operations are subject to environmental and various other regulations in each of the jurisdictions in which it conducts business.
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