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: 1.46 * Ranked among companies with meaningful Quick Ratio only.
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
The Pegasus Quick Ratio Historical Data
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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.
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 Quick Ratio vs 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 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 (PEGX) has a Quick Ratio of 3.85 as of Sep. 2006. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on The Pegasus and its competitors.
Is The Pegasus' Quick Ratio too high?
The Pegasus' current Quick Ratio is 3.85. The Media - Diversified industry median Quick Ratio is 1.46. The Pegasus' value of 3.85 is 163.7% above this industry median.
How does The Pegasus' Quick Ratio compare to SALM and NTN?
The Pegasus' Quick Ratio of 3.85 can be compared against companies in the Media - Diversified industry. The industry median Quick Ratio is 1.46. The Pegasus' value of 3.85 is 163.7% 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 Media - Diversified company?
The median Quick Ratio among Media - Diversified companies is 1.46, based on 1,039 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. The Pegasus's current Quick Ratio of 3.85 is 163.7% 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 The Pegasus and its competitors. For the Media - Diversified industry, the median Quick Ratio is 1.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Pegasus's current Quick Ratio is 3.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Pegasus stock overvalued right now?
The Pegasus (PEGX) has a current Quick Ratio of 3.85. The current Quick Ratio is 3.85 and 163.7% above the Media - Diversified industry median of 1.46. 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 The Pegasus (PEGX), the current Quick Ratio is 3.85 as of Sep. 2006. 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.
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.
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