New World Solutions has a quick ratio of 0.35. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for New World Solutions's Quick Ratio or its related term are showing as below:
FRA:RT5'
s Quick Ratio Range Over the Past 10 Years
Min: 0.01 Med: 1.08 Max: 17.33
Current: 0.35
During the past 13 years, New World Solutions's highest Quick Ratio was 17.33. The lowest was 0.01. And the median was 1.08.
FRA:RT5's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.65
vs FRA:RT5: 0.35
New World Solutions Quick Ratio Historical Data
The historical data trend for New World Solutions'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 New World Solutions's Quick Ratio
For the Software - Application subindustry, New World Solutions'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.
New World Solutions's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, New World Solutions's Quick Ratio distribution charts can be found below:
* The bar in red indicates where New World Solutions's Quick Ratio falls into.
New World Solutions 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.
New World Solutions's Quick Ratio for the fiscal year that ended in Apr. 2024 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.
New World Solutions (FRA:RT5) 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.
New World Solutions Quick Ratio Related Terms
Thank you for viewing the detailed overview of New World Solutions's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New World Solutions Inc is a technology firm focused on Electric Vehicle (EV) and Blockchain technologies. That provides shareholders with exposure to various areas of Decentralized Finance (DeFi) and electric vehicle charging solutions. The group focuses on altcoins (cryptocurrencies other the Bitcoin) through its wholly owned subsidiaries Babbage Mining Corp a Proof of Stake (POS) miner, and Beyond the Moon Inc an IDO-focused company, the Company gave investors exposure to the vast emerging market of cryptocurrencies. Its segment includes the Cryptocurrencies segment and the Technology segment.
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