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. Dixons Retail's quick ratio for the quarter that ended in Apr. 2014 was 0.47.
Dixons Retail has a quick ratio of 0.47. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Dixons Retail's Quick Ratio or its related term are showing as below:
LSE:DXNS'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.86 Max: 1.58
Current: 0.47
During the past 13 years, Dixons Retail's highest Quick Ratio was 1.58. The lowest was 0.35. And the median was 0.86.
LSE:DXNS's Quick Ratio is not ranked
in the Retail - Cyclical industry.
Industry Median: 0.86
vs LSE:DXNS: 0.47
Dixons Retail Quick Ratio Historical Data
The historical data trend for Dixons Retail'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 Dixons Retail's Quick Ratio
For the Specialty Retail subindustry, Dixons Retail'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.
Dixons Retail's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Dixons Retail's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Dixons Retail's Quick Ratio falls into.
Dixons Retail 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.
Dixons Retail's Quick Ratio for the fiscal year that ended in Apr. 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.
Dixons Retail (LSE:DXNS) 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.
Dixons Retail Quick Ratio Related Terms
Thank you for viewing the detailed overview of Dixons Retail's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Dixons Retail PLC is an electrical retailer and service company which sell consumer electronics, personal computers, domestic appliances, photographic equipment, communication products and related services. The Group's reportable segments are; UK & Ireland comprises of electrical and computing retail chains as well as business to business activities. The division is engaged in multi-channel retail sales, associated peripherals and services and related financial and after sales services and also in business to business sales of computer hardware and software; Nordics operates in Norway, Sweden, Finland, Denmark, Iceland, Greenland and the Faroe Islands. The division engages in multi-channel retail sales and provided related product support services to its customers; Other International comprises operations in Italy, Greece, the Czech Republic, Slovakia, Turkey and the business to be closed in Spain which is excluded from underlying results. The Other International division engages in retail sales and provides related product support services to its customers in all of its markets; and Pure play e-commerce comprises pure play online retailers and operates in all of the countries in which the other divisions operate and across Europe.
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