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. SITO Mobile's quick ratio for the quarter that ended in Sep. 2019 was 0.20.
SITO Mobile has a quick ratio of 0.20. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for SITO Mobile's Quick Ratio or its related term are showing as below:
STTO's Quick Ratio is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.06 * Ranked among companies with meaningful Quick Ratio only.
SITO Mobile (OTCPK:STTO) 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.
SITO Mobile Quick Ratio Related Terms
SITO Mobile Quick Ratio Historical Data
* Premium members only.
The historical data trend for SITO Mobile'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 Telecom Services subindustry, SITO Mobile'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.
SITO Mobile Quick Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SITO Mobile's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SITO Mobile'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.
SITO Mobile's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
SITO Mobile (STTO) has a Quick Ratio of 0.20 as of Sep. 2019. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on SITO Mobile and its competitors.
Is SITO Mobile's Quick Ratio too high?
SITO Mobile's current Quick Ratio is 0.20. The Telecommunication Services industry median Quick Ratio is 1.06. SITO Mobile's value of 0.20 is 81.1% below this industry median. Overall, SITO Mobile has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SITO Mobile's Quick Ratio compare to MTSL and IQST?
SITO Mobile's Quick Ratio of 0.20 can be compared against companies in the Telecommunication Services industry. The industry median Quick Ratio is 1.06. SITO Mobile's value of 0.20 is 81.1% 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 Telecommunication Services company?
The median Quick Ratio among Telecommunication Services companies is 1.06, based on 371 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. SITO Mobile's current Quick Ratio of 0.20 is 81.1% 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 SITO Mobile and its competitors. For the Telecommunication Services industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SITO Mobile's current Quick Ratio is 0.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SITO Mobile stock overvalued right now?
SITO Mobile (STTO) has a current Quick Ratio of 0.20. The current Quick Ratio is 0.20 and 81.1% below the Telecommunication Services industry median of 1.06. SITO Mobile's overall GF Score™ is 12/100. 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 SITO Mobile (STTO), the current Quick Ratio is 0.20 as of Sep. 2019. 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.
SITO Mobile Ltd operates a mobile location-based advertising platform serving businesses, advertisers, and brands. Business activity of the group is operated SITO Location Based Advertising and SITO Mobile Messaging source. SITO Location Based Advertising displays advertisements and videos on behalf of advertisers including various features, such as geo-fencing, verified walk-in, behavioral targeting, and analytics and optimization; and SITO Mobile Messaging is a platform for building and controlling tailored programs including messaging and customer incentive programs. Its platform and tools are designed to enable large brands or anyone with substantial reach to utilize the mobile device as a new means to communicate.
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