Digital River (FRA:RIV) Quick Ratio : 2.07 (As of Sep. 2014)

View and export this data going back to . Start your Free Trial

What is Digital River 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. Digital River's quick ratio for the quarter that ended in Sep. 2014 was 2.07.

Digital River has a quick ratio of 2.07. It generally indicates good short-term financial strength.

The historical rank and industry rank for Digital River's Quick Ratio or its related term are showing as below:

FRA:RIV's Quick Ratio is not ranked ^*
in the Software industry.
Industry Median: 1.63
* Ranked among companies with meaningful Quick Ratio only.

Digital River Quick Ratio Historical Data

The historical data trend for Digital River'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.

* Premium members only.

Digital River Quick Ratio Chart

Digital River Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Quick Ratio

Get a 7-Day Free Trial

1.81

2.93

2.66

2.84

2.59

Digital River Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Quick Ratio	Get a 7-Day Free Trial															2.79	2.59	2.10	2.08	2.07

Competitive Comparison of Digital River's Quick Ratio

For the Software - Application subindustry, Digital River'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.

Digital River's Quick Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Digital River's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Digital River's Quick Ratio falls into.

Digital River 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.

Digital River's Quick Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Quick Ratio (A: Dec. 2013 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(510.812	-	0)	/	197.462
	=	2.59

Digital River's Quick Ratio for the quarter that ended in Sep. 2014 is calculated as

Quick Ratio (Q: Sep. 2014 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(370.049	-	0)	/	178.611
	=	2.07

Digital River (FRA:RIV) 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.

Digital River Quick Ratio Related Terms

Thank you for viewing the detailed overview of Digital River's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.

Digital River Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Digital River Inc (FRA:RIV) » Definitions » Quick Ratio

Traded in Other Exchanges

N/A

Address

Website

http://www.digitalriver.com

Digital River, Inc., was incorporated in Delaware in February 1994. The Company provides end-to-end e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets. It offers its clients, services that enables them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales while mitigating risks. Its services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, website optimization, web analytics and reporting, and CD production and delivery. Its products and services allow its clients to focus on promoting and marketing their products and brands while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. Shoppers could browse for products and make purchases online. The Company typically is the seller of record for transactions through its client branded stores. It also processes the buyer's payment as the merchant of record, including collection and remittance of applicable taxes. The Company's e-commerce store solutions range from simple remote control models to more comprehensive online store models. In addition to the services the Company provides, that facilitate the completion of an online transaction, it also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization affiliate marketing, store optimization, multi-variant testing, web analytic services and e-mail optimization. All of the services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer. The Company sells its products and services to consumers through the Internet. It sells and markets its services for clients through a direct sales force located in offices in the United States, Europe and Asia Pacific. Some of the competitors of the Company are Art Technology Group, Inc., IBM Corporation, IBM Global Services, Accenture, Inc., GSI Commerce, Inc., asknet Inc., Arvato, ValueClick, Inc. and aQuantive, Inc. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the internet.