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. Virtu Financial's quick ratio for the quarter that ended in Sep. 2024 was 1.39.
Virtu Financial has a quick ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Virtu Financial's Quick Ratio or its related term are showing as below:
STU:0VF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.36 Med: 1.32 Max: 2.21
Current: 1.39
During the past 13 years, Virtu Financial's highest Quick Ratio was 2.21. The lowest was 0.36. And the median was 1.32.
STU:0VF's Quick Ratio is ranked worse than 66.77% of 659
companies
in the Capital Markets industry
Industry Median: 1.99
vs STU:0VF: 1.39
Virtu Financial Quick Ratio Historical Data
The historical data trend for Virtu Financial'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 Virtu Financial's Quick Ratio
For the Capital Markets subindustry, Virtu Financial'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.
Virtu Financial's Quick Ratio Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Virtu Financial's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Virtu Financial's Quick Ratio falls into.
Virtu Financial 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.
Virtu Financial's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
Virtu Financial (STU:0VF) 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.
Virtu Financial Quick Ratio Related Terms
Thank you for viewing the detailed overview of Virtu Financial's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Virtu Financial Inc is a technology-enabled market maker and liquidity provider to the financial markets. The company's operating segment includes Market Making; and Execution Services. The non-operating segment of the company includes the Corporate segment. The company generates maximum revenue from the market-making segment. The Market Making segment principally consists of market-making in the cash, futures, and options markets across equities, options, fixed income, currencies, and commodities. Geographically, it derives a majority of its revenue from the United States and also has a presence in Ireland and Other Countries.
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