ReadSoft AB (LTS:0GQO) Quick Ratio : 0.99 (As of Jun. 2014)

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What is ReadSoft AB 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. ReadSoft AB's quick ratio for the quarter that ended in Jun. 2014 was 0.99.

ReadSoft AB has a quick ratio of 0.99. It indicates that the company cannot currently fully pay back its current liabilities.

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

LTS:0GQO' s Quick Ratio Range Over the Past 10 Years
Min: 0.99 Med: 1.19 Max: 1.38
Current: 0.99

During the past 13 years, ReadSoft AB's highest Quick Ratio was 1.38. The lowest was 0.99. And the median was 1.19.

LTS:0GQO's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.65 vs LTS:0GQO: 0.99

ReadSoft AB Quick Ratio Historical Data

The historical data trend for ReadSoft AB'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.

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ReadSoft AB Quick Ratio Chart

ReadSoft AB Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Quick Ratio

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1.19

1.21

1.38

1.29

1.06

ReadSoft AB Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Quick Ratio	Get a 7-Day Free Trial															1.10	1.08	1.06	1.03	0.99

Competitive Comparison of ReadSoft AB's Quick Ratio

For the Software - Application subindustry, ReadSoft AB'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.

ReadSoft AB's Quick Ratio Distribution in the Software Industry

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

* The bar in red indicates where ReadSoft AB's Quick Ratio falls into.

ReadSoft AB 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.

ReadSoft AB'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
	=	(433.533	-	2.975)	/	405.709
	=	1.06

ReadSoft AB's Quick Ratio for the quarter that ended in Jun. 2014 is calculated as

Quick Ratio (Q: Jun. 2014 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(414.9	-	0)	/	417.1
	=	0.99

ReadSoft AB (LTS:0GQO) 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.

ReadSoft AB Quick Ratio Related Terms

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ReadSoft AB (LTS:0GQO) Business Description

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ReadSoft AB is a Sweden-based company that creates and markets software and services for document automation, processes such as data entry, information verification, document workflows, and e-voicing. The company operates in over 16 countries worldwide, with partnerships in an additional 70. The company offers solutions primarily for industries such as banking, manufacturing, service bureaus, market research, insurance, government, and medical. Major customers include IKEA, Audi, Porsche, Yves Rocher, Swedish Tax, DaimlerChrysler, HSBS Bank, Avon, Bosch, London Underground, New York Transit, Toyota, Volvo, Monoprix, Ericsson, and ING. The company is headquartered in Helsingborg, Sweden. The company offers ReadSoft DOCUMENTS, a complete software platform for document automation. The product incorporates five Automation Areas: Capture, capturing the information in any format and making it ready for electronic processing; Understand, enabling the computer to read, sort, interpret, extract, and index documents electronically; Manage, providing customers with control of electronic documents, including the verification and quality control with archiving and monitoring capabilities; Integrate, integration with the business software; and Interchange, Electronic Data Interchange. Capabilities within each Automation Area are customized to the needs of the customer, and solutions can be expanded to include any required extra capabilities. Also, this software can be integrated with systems such as SAP and Oracle E-Business Suite, Intentia, and IFS. ReadSoft business solutions for specific areas include: ReadSoft Documents for Mailrooms, Documents for EDI, Documents for Invoices, and Documents for Forms. Additionally, the company offers Professional Services such as project management and customization, Solution Optimization, Training, and Technical Support.

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