OAT (OATN) Quick Ratio: 0.13 (As of Feb. 2012)


What is OAT Quick Ratio?

OAT OATN Quick Ratio is 0.13 as of Feb. 2012.

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. OAT's quick ratio for the quarter that ended in Feb. 2012 was 0.13.

OAT has a quick ratio of 0.13. It indicates that the company cannot currently fully pay back its current liabilities.

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

OATN's Quick Ratio is not ranked *
in the Construction industry.
Industry Median: 1.29
* Ranked among companies with meaningful Quick Ratio only.

OAT  (OTCPK:OATN) 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.

OAT Quick Ratio Related Terms

OAT Quick Ratio Historical Data

* Premium members only.

The historical data trend for OAT'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.

OAT Quick Ratio Chart

OAT Annual Data
Trend Feb08 Feb09 Feb10 Feb11 Feb12
Quick Ratio
11.25 2.29 0.88 0.00 0.13

OAT Semi-Annual Data
Feb08 Feb09 Feb10 Feb11 Feb12
Quick Ratio 11.25 2.29 0.88 0.00 0.13

OATN vs AEHL, ILAG, TT: Quick Ratio Comparison

For the Building Products & Equipment subindustry, OAT'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.

OAT Quick Ratio vs Construction Industry

For the Construction industry and Industrials sector, OAT's Quick Ratio distribution charts can be found below:

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


OAT 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.

OAT's Quick Ratio for the fiscal year that ended in Feb. 2012 is calculated as

Quick Ratio (A: Feb. 2012 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(0.174-0)/1.299
=0.13

OAT's Quick Ratio for the quarter that ended in Feb. 2012 is calculated as

Quick Ratio (Q: Feb. 2012 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(0.174-0)/1.299
=0.13

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 0.13 mean?
OAT (OATN) has a Quick Ratio of 0.13 as of Feb. 2012. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on OAT and its competitors.
Is OAT's Quick Ratio too high?
OAT's current Quick Ratio is 0.13. The Construction industry median Quick Ratio is 1.29. OAT's value of 0.13 is 89.9% below this industry median.
How does OAT's Quick Ratio compare to AEHL and ILAG?
OAT's Quick Ratio of 0.13 can be compared against companies in the Construction industry. The industry median Quick Ratio is 1.29. OAT's value of 0.13 is 89.9% below this benchmark. 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 Construction company?
The median Quick Ratio among Construction companies is 1.29, based on 1,780 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. OAT's current Quick Ratio of 0.13 is 89.9% 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 OAT and its competitors. For the Construction industry, the median Quick Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OAT's current Quick Ratio is 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OAT stock overvalued right now?
OAT (OATN) has a current Quick Ratio of 0.13. The current Quick Ratio is 0.13 and 89.9% below the Construction industry median of 1.29. 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 OAT (OATN), the current Quick Ratio is 0.13 as of Feb. 2012. 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.

OAT Business Description

Address 12106 Park Street, Cerritos, CA, USA, 90703
OAT Inc builds HVAC system package to control the usage time and temperature in each room using a computer utilizing the Direct Digital Control Program. The HVAC system is composed of Chiller, Cooling Tower, Chilled and Hot Water Pump, Hydronic Piping System.