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NextGen Acquisition II (NAS:NGCAW) 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.
NextGen Acquisition II Quick Ratio Related Terms
NextGen Acquisition II 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.
NextGen Acquisition II Quick Ratio Chart
NextGen Acquisition II Annual Data
Trend
Quick Ratio
NextGen Acquisition II Semi-Annual Data
Jan21
Mar21
Jun21
Sep21
Quick Ratio
0.19
5.51
3.16
0.68
NGCAW vs : Quick Ratio Comparison
For the Shell Companies subindustry, NextGen Acquisition II'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.
NextGen Acquisition II Quick Ratio vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, NextGen Acquisition II's Quick Ratio distribution charts can be found below:
* The bar in red indicates where NextGen Acquisition II'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.
NextGen Acquisition II's Quick Ratio for the fiscal year that ended in . 20 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.
NextGen Acquisition II (NGCAW) has a Quick Ratio of 0.68 as of Sep. 2021. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on NextGen Acquisition II and its competitors. This is near median its historical median of 0.68. Over the past decade, NextGen Acquisition II's Quick Ratio has ranged from 0.19 to 3.16.
Is NextGen Acquisition II's Quick Ratio too high?
NextGen Acquisition II's current Quick Ratio of 0.68 is near median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 3.16. The Diversified Financial Services industry median Quick Ratio is 3.00. NextGen Acquisition II's value of 0.68 is 77.3% below this industry median.
How does NextGen Acquisition II's Quick Ratio compare to ?
NextGen Acquisition II's Quick Ratio of 0.68 can be compared against companies in the Diversified Financial Services industry. The industry median Quick Ratio is 3.00. NextGen Acquisition II's value of 0.68 is 77.3% below this benchmark. Historically, NextGen Acquisition II's own Quick Ratio has ranged from 0.19 to 3.16 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 3.00, NextGen Acquisition II 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 Diversified Financial Services company?
The median Quick Ratio among Diversified Financial Services companies is 3.00, based on 492 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. NextGen Acquisition II's current Quick Ratio of 0.68 is 77.3% 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 NextGen Acquisition II and its competitors. For the Diversified Financial Services industry, the median Quick Ratio is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextGen Acquisition II's current Quick Ratio is 0.68, which is near median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextGen Acquisition II stock overvalued right now?
NextGen Acquisition II (NGCAW) has a current Quick Ratio of 0.68. The current Quick Ratio is 0.68, which is near median its 10-year median of 0.68 and 77.3% below the Diversified Financial Services industry median of 3.00. 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 NextGen Acquisition II (NGCAW), the current Quick Ratio is 0.68 as of Sep. 2021. 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.
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