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. Otg Exp's quick ratio for the quarter that ended in Dec. 2014 was 0.96.
Otg Exp has a quick ratio of 0.96. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Otg Exp's Quick Ratio or its related term are showing as below:
OTG's Quick Ratio is not ranked *
in the Restaurants industry.
Industry Median: 0.87 * Ranked among companies with meaningful Quick Ratio only.
Otg Exp (NAS:OTG) 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.
Otg Exp Quick Ratio Related Terms
Otg Exp Quick Ratio Historical Data
* Premium members only.
The historical data trend for Otg Exp'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.
Otg Exp Quick Ratio Chart
Otg Exp Annual Data
Trend
Dec13
Dec14
Quick Ratio
0.18
0.96
Otg Exp Semi-Annual Data
Dec13
Dec14
Quick Ratio
0.18
0.96
OTG vs IRGTQ, CDIF, STRZ: Quick Ratio Comparison
For the Restaurants subindustry, Otg Exp'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.
Otg Exp Quick Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Otg Exp'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.
Otg Exp's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Otg Exp (OTG) has a Quick Ratio of 0.96 as of Dec. 2014. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Otg Exp and its competitors.
Is Otg Exp's Quick Ratio too high?
Otg Exp's current Quick Ratio is 0.96. The Restaurants industry median Quick Ratio is 0.87. Otg Exp's value of 0.96 is 10.3% above this industry median.
How does Otg Exp's Quick Ratio compare to IRGTQ and CDIF?
Otg Exp's Quick Ratio of 0.96 can be compared against companies in the Restaurants industry. The industry median Quick Ratio is 0.87. Otg Exp's value of 0.96 is 10.3% above 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 Restaurants company?
The median Quick Ratio among Restaurants companies is 0.87, based on 365 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. Otg Exp's current Quick Ratio of 0.96 is 10.3% 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 Otg Exp and its competitors. For the Restaurants industry, the median Quick Ratio is 0.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otg Exp's current Quick Ratio is 0.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Quick Ratio of 0.96. The current Quick Ratio is 0.96 and 10.3% above the Restaurants industry median of 0.87. 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 Otg Exp (OTG), the current Quick Ratio is 0.96 as of Dec. 2014. 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.
Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.
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