PRZM (Prism Technologies Group) Quick Ratio: 0.06 (As of Sep. 2017)

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What is Prism Technologies Group Quick Ratio?

Prism Technologies Group PRZM -99.00% Quick Ratio is 0.06 as of Sep. 2017.

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. Prism Technologies Group's quick ratio for the quarter that ended in Sep. 2017 was 0.06.

Prism Technologies Group has a quick ratio of 0.06. It indicates that the company cannot currently fully pay back its current liabilities.

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

PRZM's Quick Ratio is not ranked *
in the Software industry.
Industry Median: 1.7
* Ranked among companies with meaningful Quick Ratio only.

Prism Technologies Group  (OTCPK:PRZM) 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.


Prism Technologies Group Quick Ratio Related Terms


Prism Technologies Group Quick Ratio Historical Data

* Premium members only.

The historical data trend for Prism Technologies Group'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.

Prism Technologies Group Quick Ratio Chart

Prism Technologies Group Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.16 66.61 29.43 0.62 0.27

Prism Technologies Group Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.36 0.27 0.16 0.12 0.06

PRZM vs SYSX: Quick Ratio Comparison

For the Information Technology Services subindustry, Prism Technologies Group'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.


Prism Technologies Group Quick Ratio vs Software Industry

For the Software industry and Technology sector, Prism Technologies Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Prism Technologies Group's Quick Ratio falls into.



Prism Technologies Group 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.

Prism Technologies Group's Quick Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Quick Ratio (A: Dec. 2016 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1.588-0)/5.847
=0.27

Prism Technologies Group's Quick Ratio for the quarter that ended in Sep. 2017 is calculated as

Quick Ratio (Q: Sep. 2017 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(0.251-0)/3.899
=0.06

* 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 0.06 mean?
Prism Technologies Group (PRZM) has a Quick Ratio of 0.06 as of Sep. 2017. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Prism Technologies Group and its competitors.
Is Prism Technologies Group's Quick Ratio too high?
Prism Technologies Group's current Quick Ratio is 0.06. The Software industry median Quick Ratio is 1.70. Prism Technologies Group's value of 0.06 is 96.5% below this industry median.
How does Prism Technologies Group's Quick Ratio compare to SYSX?
Prism Technologies Group's Quick Ratio of 0.06 can be compared against companies in the Software industry. The industry median Quick Ratio is 1.70. Prism Technologies Group's value of 0.06 is 96.5% 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 Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,874 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. Prism Technologies Group's current Quick Ratio of 0.06 is 96.5% 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 Prism Technologies Group 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. Prism Technologies Group's current Quick Ratio is 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prism Technologies Group stock overvalued right now?
Prism Technologies Group (PRZM) has a current Quick Ratio of 0.06. The current Quick Ratio is 0.06 and 96.5% below the Software industry median of 1.70. 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 Prism Technologies Group (PRZM), the current Quick Ratio is 0.06 as of Sep. 2017. 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.

Prism Technologies Group Business Description

Address 101 Parkshore Drive, Suite 100, Folsom, CA, USA, 95630
Prism Technologies Group Inc together with its subsidiaries operates as an intellectual property licensing and technology research and development company. It owns a patent portfolio consisting of nine patent families in the computer and network security, semiconductors and medical technology space. Prism continues to develop and patent new technologies and is committed to ongoing research and development efforts in several fields. Its objective is to develop and invent new technologies in the computer and network security, wearable computing, transaction processing and healthcare to speed time to market opportunities for the customers. Geographically all the operation of the firm is functioned through the region of US.