The Descartes Systems Group has a quick ratio of 2.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Descartes Systems Group's Quick Ratio or its related term are showing as below:
MEX:DSG N'
s Quick Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1.69 Max: 2.43
Current: 2.05
During the past 13 years, The Descartes Systems Group's highest Quick Ratio was 2.43. The lowest was 0.87. And the median was 1.69.
MEX:DSG N's Quick Ratio is ranked better than 59.15% of 2864
companies
in the Software industry
Industry Median: 1.7
vs MEX:DSG N: 2.05
The Descartes Systems Group (MEX:DSG N) 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.
The Descartes Systems Group Quick Ratio Related Terms
The Descartes Systems Group Quick Ratio Historical Data
* 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.
MEX:DSG N vs CRM, SHOP, UBER: Quick Ratio Comparison
For the Software - Application subindustry, The Descartes Systems Group'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.
The Descartes Systems Group Quick Ratio vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Quick Ratio falls into.
The Descartes Systems Group 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.
* 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.
The Descartes Systems Group (MEX:DSG N) has a Quick Ratio of 2.05 as of Apr. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on The Descartes Systems Group and its competitors. This is 21% above median its historical median of 1.69. Over the past decade, The Descartes Systems Group's Quick Ratio has ranged from 0.87 to 2.43. According to the industry distribution chart, The Descartes Systems Group ranks #1170 out of 2864 companies in the Software industry, placing it in the top 40.9%.
Is The Descartes Systems Group's Quick Ratio too high?
The Descartes Systems Group's current Quick Ratio of 2.05 is 21% above median its 10-year median of 1.69. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.43. The Software industry median Quick Ratio is 1.70. The Descartes Systems Group's value of 2.05 is 20.6% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #1170 out of 2864 companies in the Software industry, which is above the industry midpoint. Overall, The Descartes Systems Group has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Quick Ratio compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #1170 out of 2864 companies for Quick Ratio. This puts The Descartes Systems Group in the upper half of its industry. The industry median Quick Ratio is 1.70. The Descartes Systems Group's value of 2.05 is 20.6% above this benchmark. Historically, The Descartes Systems Group's own Quick Ratio has ranged from 0.87 to 2.43 over the past decade. While the company's 10-year median is 1.69 vs. the industry median of 1.70, The Descartes Systems Group has consistently been above 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. The Descartes Systems Group's current Quick Ratio of 2.05 is 20.6% above 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 The Descartes Systems Group 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. The Descartes Systems Group's current Quick Ratio is 2.05, which is 21% above median its own 10-year median of 1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
The Descartes Systems Group (MEX:DSG N) has a current Quick Ratio of 2.05. The stock's GF Value™ is MXN2,129.50, compared to a current price of MXN1,264.95 — trading 40.6% below its estimated fair value. The current Quick Ratio is 2.05, which is 21% above median its 10-year median of 1.69 and 20.6% above the Software industry median of 1.70. The Descartes Systems Group's overall GF Score™ is 85/100. 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 The Descartes Systems Group (MEX:DSG N), the current Quick Ratio is 2.05 as of Apr. 2026. 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.
Is The Descartes Systems Group (MEX:DSG N) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of MXN1,264.95 is trading 40.6% below its estimated GF Value™ of MXN2,129.50.
Key valuation signals for MEX:DSG N:
Quick Ratio: 2.05 (21% above median its 10-year median of 1.69)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 20.6% above the Software median (#1170 of 2864)
No single metric tells the full story. See the MEX:DSG N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
85GF Score
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