Sparta Commercial ServicesSRCO Quick Ratio is 0.08 as of Jan. 2026, which is 14% above its 10-year median of 0.07. The stock has 5 warning signs investors should review. Among 2,862 Software companies, Sparta Commercial Services ranks worse than 97.8% on this metric.
Sparta Commercial Services has a quick ratio of 0.08. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Sparta Commercial Services's Quick Ratio or its related term are showing as below:
SRCO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.07 Max: 0.08
Current: 0.08
During the past 13 years, Sparta Commercial Services's highest Quick Ratio was 0.08. The lowest was 0.01. And the median was 0.07.
SRCO's Quick Ratio is ranked worse than 97.8% of 2862
companies
in the Software industry
Industry Median: 1.7
vs SRCO: 0.08
Sparta Commercial Services (OTCPK:SRCO) 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.
Sparta Commercial Services Quick Ratio Related Terms
Sparta Commercial Services Quick Ratio Historical Data
* 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 Software - Application subindustry, Sparta Commercial Services'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.
Sparta Commercial Services Quick Ratio vs Software Industry
For the Software industry and Technology sector, Sparta Commercial Services's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sparta Commercial Services's Quick Ratio falls into.
Sparta Commercial Services 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.
* 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.
Sparta Commercial Services (SRCO) has a Quick Ratio of 0.08 as of Jan. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Sparta Commercial Services and its competitors. This is 14% above median its historical median of 0.07. Over the past decade, Sparta Commercial Services' Quick Ratio has ranged from 0.01 to 0.08. According to the industry distribution chart, Sparta Commercial Services ranks #2799 out of 2862 companies in the Software industry, placing it in the top 97.8%.
Is Sparta Commercial Services' Quick Ratio too high?
Sparta Commercial Services' current Quick Ratio of 0.08 is 14% above median its 10-year median of 0.07. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.08. The Software industry median Quick Ratio is 1.70. Sparta Commercial Services' value of 0.08 is 95.3% below this industry median. Based on the distribution chart, Sparta Commercial Services ranks #2799 out of 2862 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Sparta Commercial Services' Quick Ratio compare to QGSI and WCT?
According to the Software industry distribution chart, Sparta Commercial Services ranks #2799 out of 2862 companies for Quick Ratio. This places Sparta Commercial Services in the lower half of its industry. The industry median Quick Ratio is 1.70. Sparta Commercial Services' value of 0.08 is 95.3% below this benchmark. Historically, Sparta Commercial Services' own Quick Ratio has ranged from 0.01 to 0.08 over the past decade. While the company's 10-year median is 0.07 vs. the industry median of 1.70, Sparta Commercial Services has consistently been below 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 2,862 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. Sparta Commercial Services's current Quick Ratio of 0.08 is 95.3% 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 Sparta Commercial Services 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. Sparta Commercial Services's current Quick Ratio is 0.08, which is 14% above median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sparta Commercial Services stock overvalued right now?
Based on GuruFocus' analysis, Sparta Commercial Services (SRCO) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.11, compared to a current price of $0.09 — trading 17.9% below its estimated fair value. The current Quick Ratio is 0.08, which is 14% above median its 10-year median of 0.07 and 95.3% 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 Sparta Commercial Services (SRCO), the current Quick Ratio is 0.08 as of Jan. 2026. 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.
Sparta Commercial Services Inc through its subsidiaries offers technology products and services. The company develops, manages, and markets its business mobile applications for smartphones and tablets. Its mobile application offerings range from racetracks, private clubs, country clubs, restaurants, and grocery stores. The company serves small and medium-size businesses under the tradename iMobileApp. It generates revenue from Information Technology, Wellness products, and Merchant financing.
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