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. The Pegasus's quick ratio for the quarter that ended in Sep. 2006 was 3.85.
The Pegasus has a quick ratio of 3.85. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Pegasus's Quick Ratio or its related term are showing as below:
PEGX's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.44 * Ranked among companies with meaningful Quick Ratio only.
The Pegasus Quick Ratio Historical Data
The historical data trend for The Pegasus'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.
Competitive Comparison of The Pegasus's Quick Ratio
For the Broadcasting subindustry, The Pegasus'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 Pegasus's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, The Pegasus's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The Pegasus's Quick Ratio falls into.
The Pegasus 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.
The Pegasus's Quick Ratio for the fiscal year that ended in Dec. 2005 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.
The Pegasus (OTCPK:PEGX) 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 Pegasus Quick Ratio Related Terms
Thank you for viewing the detailed overview of The Pegasus's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Pegasus Companies Inc is the holding company for a variety of satellite and media companies. The company previously operated as an independent provider of DIRECTV to more than 1.1 million subscribers but went into bankruptcy following the termination of the relationship. The company primarily owns and operates six broadcast TV stations and operates three others. These stations serve markets in Tennessee, Florida, Pennsylvania, and Maine.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PEGX has been successfully added to your 