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. Vince Holding's quick ratio for the quarter that ended in Oct. 2023 was 0.55.
Vince Holding has a quick ratio of 0.55. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Vince Holding's Quick Ratio or its related term are showing as below:
STU:VNC1'
s Quick Ratio Range Over the Past 10 Years
Min: 0.23 Med: 0.58 Max: 1.82
Current: 0.55
During the past 13 years, Vince Holding's highest Quick Ratio was 1.82. The lowest was 0.23. And the median was 0.58.
The historical data trend for Vince Holding'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 Vince Holding's Quick Ratio
For the Apparel Manufacturing subindustry, Vince Holding'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.
Vince Holding's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vince Holding's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vince Holding's Quick Ratio falls into.
Vince Holding 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.
Vince Holding's Quick Ratio for the fiscal year that ended in Jan. 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.
Vince Holding (STU:VNC1) 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.
Vince Holding Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vince Holding's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vince Holding Corp is a fashion brand that is engaged in wholesale and retail delivery of luxury essentials like women's and men's apparel, women's and men's footwear, and handbags. Its offers women's collections of luxurious cashmere sweaters and silk blouses, leather and suede leggings and jackets, dresses, denim, pants, tanks and t-shirts, and a growing assortment of outerwear. It focuses on developing an elevated collection of Vince apparel and accessories to serve the luxurious need of the customer. The company manages its business in three segments namely Vince Wholesale, Vince Direct-to-consumer, and Rebecca Taylor and Parker segment. It operates its e-commerce business through its website. Majority of its revenue generated from Vince Wholesale segment.
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