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TextMagic ASOTSE:MAGIC -0.56%58 Quick Ratio is 1.98 as of Dec. 2025, which is 13% above its 10-year median of 1.75. GuruFocus rates OTSE:MAGIC with a GF Score™ of 58/100 and a GF Value™ of €3.78 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,869 Software companies, TextMagic AS ranks better than 57.89% on this metric.
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. TextMagic AS's quick ratio for the quarter that ended in Dec. 2025 was 1.98.
TextMagic AS has a quick ratio of 1.98. It generally indicates good short-term financial strength.
The historical rank and industry rank for TextMagic AS's Quick Ratio or its related term are showing as below:
OTSE:MAGIC'
s Quick Ratio Range Over the Past 10 Years
Min: 1.08 Med: 1.75 Max: 2.26
Current: 1.98
During the past 5 years, TextMagic AS's highest Quick Ratio was 2.26. The lowest was 1.08. And the median was 1.75.
OTSE:MAGIC's Quick Ratio is ranked better than 57.89% of 2869
companies
in the Software industry
Industry Median: 1.7
vs OTSE:MAGIC: 1.98
TextMagic AS (OTSE:MAGIC) 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.
TextMagic AS Quick Ratio Related Terms
TextMagic AS Quick Ratio Historical Data
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The historical data trend for TextMagic AS'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.
OTSE:MAGIC vs UBER, SHOP, CRM: Quick Ratio Comparison
For the Software - Application subindustry, TextMagic AS'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.
TextMagic AS Quick Ratio vs Software Industry
For the Software industry and Technology sector, TextMagic AS's Quick Ratio distribution charts can be found below:
* The bar in red indicates where TextMagic AS'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.
TextMagic AS's Quick Ratio for the fiscal year that ended in Dec. 2025 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.
TextMagic AS (OTSE:MAGIC) has a Quick Ratio of 1.98 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on TextMagic AS and its competitors. This is 13% above median its historical median of 1.75. Over the past decade, TextMagic AS's Quick Ratio has ranged from 1.08 to 2.26. According to the industry distribution chart, TextMagic AS ranks #1208 out of 2869 companies in the Software industry, placing it in the top 42.1%.
Is TextMagic AS's Quick Ratio too high?
TextMagic AS's current Quick Ratio of 1.98 is 13% above median its 10-year median of 1.75. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 2.26. The Software industry median Quick Ratio is 1.70. TextMagic AS's value of 1.98 is 16.5% above this industry median. Based on the distribution chart, TextMagic AS ranks #1208 out of 2869 companies in the Software industry, which is above the industry midpoint. Overall, TextMagic AS has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's Quick Ratio compare to UBER and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #1208 out of 2869 companies for Quick Ratio. This puts TextMagic AS in the upper half of its industry. The industry median Quick Ratio is 1.70. TextMagic AS's value of 1.98 is 16.5% above this benchmark. Historically, TextMagic AS's own Quick Ratio has ranged from 1.08 to 2.26 over the past decade. While the company's 10-year median is 1.75 vs. the industry median of 1.70, TextMagic AS 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 2,869 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. TextMagic AS's current Quick Ratio of 1.98 is 16.5% 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 TextMagic AS 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. TextMagic AS's current Quick Ratio is 1.98, which is 13% above median its own 10-year median of 1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.77 — trading 53.2% below its estimated fair value. The current Quick Ratio is 1.98, which is 13% above median its 10-year median of 1.75 and 16.5% above the Software industry median of 1.70. TextMagic AS's overall GF Score™ is 58/100 with 3 warning signs to review. 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 TextMagic AS (OTSE:MAGIC), the current Quick Ratio is 1.98 as of Dec. 2025. 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.77 is trading 53.2% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
Quick Ratio: 1.98 (13% above median its 10-year median of 1.75)
GF Value™: €3.78 vs. price of €1.77 (53.2% below fair value)
Industry Position: 16.5% above the Software median (#1208 of 2869)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
58GF Score
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