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. Software Circle's quick ratio for the quarter that ended in Sep. 2023 was 3.54.
Software Circle has a quick ratio of 3.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Software Circle's Quick Ratio or its related term are showing as below:
LSE:SFT'
s Quick Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.42 Max: 5.05
Current: 3.54
During the past 13 years, Software Circle's highest Quick Ratio was 5.05. The lowest was 0.73. And the median was 1.42.
LSE:SFT's Quick Ratio is ranked better than 83.1% of 1077
companies
in the Business Services industry
Industry Median: 1.55
vs LSE:SFT: 3.54
Software Circle Quick Ratio Historical Data
The historical data trend for Software Circle'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 Software Circle's Quick Ratio
For the Specialty Business Services subindustry, Software Circle'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.
Software Circle's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Software Circle's Quick Ratio falls into.
Software Circle 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.
Software Circle's Quick Ratio for the fiscal year that ended in Mar. 2023 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.
Software Circle (LSE:SFT) 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.
Software Circle Quick Ratio Related Terms
Thank you for viewing the detailed overview of Software Circle's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Software Circle Plc is a UK-based company who is an acquirer of great vertical market software businesses. The company operates complex logistics, a SaaS platform, and brands that sell print and web to business customers. The segmental analysis by nature of service includes license fees, company-owned studio revenue, brand partner print, and online sales plus trade print. Some of its brands include Nettl, watermark, and topfloor. Geographically it has its business across the region of the UK and Ireland, Europe, and others of which the UK and Ireland's region accounts for a majority of the revenue.
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