Allocate SoftwareLSE:ALLA Quick Ratio is 1.36 as of May. 2014, which is 22% below its 10-year median of 1.75. The stock has 1 warning sign investors should review.
Allocate Software has a quick ratio of 1.36. It generally indicates good short-term financial strength.
The historical rank and industry rank for Allocate Software's Quick Ratio or its related term are showing as below:
LSE:ALLA'
s Quick Ratio Range Over the Past 10 Years
Min: 0.58 Med: 1.75 Max: 4.23
Current: 1.36
During the past 13 years, Allocate Software's highest Quick Ratio was 4.23. The lowest was 0.58. And the median was 1.75.
LSE:ALLA's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.7
vs LSE:ALLA: 1.36
Allocate Software (LSE:ALLA) 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.
Allocate Software Quick Ratio Related Terms
Allocate Software Quick Ratio Historical Data
* Premium members only.
The historical data trend for Allocate Software'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.
For the Software - Application subindustry, Allocate Software'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.
Allocate Software Quick Ratio vs Software Industry
For the Software industry and Technology sector, Allocate Software's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Allocate Software's Quick Ratio falls into.
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.
Allocate Software's Quick Ratio for the fiscal year that ended in May. 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.
Allocate Software (LSE:ALLA) has a Quick Ratio of 1.36 as of May. 2014. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Allocate Software and its competitors. This is 22% below median its historical median of 1.75. Over the past decade, Allocate Software's Quick Ratio has ranged from 0.58 to 4.23.
Is Allocate Software's Quick Ratio too high?
Allocate Software's current Quick Ratio of 1.36 is 22% below median its 10-year median of 1.75. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 4.23. The Software industry median Quick Ratio is 1.70. Allocate Software's value of 1.36 is 20% below this industry median.
How does Allocate Software's Quick Ratio compare to SREV and ASUR?
Allocate Software's Quick Ratio of 1.36 can be compared against companies in the Software industry. The industry median Quick Ratio is 1.70. Allocate Software's value of 1.36 is 20% below this benchmark. Historically, Allocate Software's own Quick Ratio has ranged from 0.58 to 4.23 over the past decade. While the company's 10-year median is 1.75 vs. the industry median of 1.70, Allocate Software 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 Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,864 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. Allocate Software's current Quick Ratio of 1.36 is 20% 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 Allocate Software and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current Quick Ratio is 1.36, which is 22% below median its own 10-year median of 1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Quick Ratio of 1.36. The current Quick Ratio is 1.36, which is 22% below median its 10-year median of 1.75 and 20% below the Software industry median of 1.70. 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 Allocate Software (LSE:ALLA), the current Quick Ratio is 1.36 as of May. 2014. 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.
Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.
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