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. Saf Tehnika's quick ratio for the quarter that ended in Dec. 2024 was 1.66.
Saf Tehnika has a quick ratio of 1.66. It generally indicates good short-term financial strength.
The historical rank and industry rank for Saf Tehnika's Quick Ratio or its related term are showing as below:
STU:VTZ'
s Quick Ratio Range Over the Past 10 Years
Min: 0.54 Med: 1.88 Max: 4.83
Current: 1.66
During the past 13 years, Saf Tehnika's highest Quick Ratio was 4.83. The lowest was 0.54. And the median was 1.88.
STU:VTZ's Quick Ratio is ranked better than 56.34% of 2453
companies
in the Hardware industry
Industry Median: 1.45
vs STU:VTZ: 1.66
Saf Tehnika Quick Ratio Historical Data
The historical data trend for Saf Tehnika'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 Saf Tehnika's Quick Ratio
For the Communication Equipment subindustry, Saf Tehnika'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.
Saf Tehnika's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Saf Tehnika's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Saf Tehnika's Quick Ratio falls into.
Saf Tehnika 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.
Saf Tehnika's Quick Ratio for the fiscal year that ended in Jun. 2024 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.
Saf Tehnika (STU:VTZ) 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.
Saf Tehnika Quick Ratio Related Terms
Thank you for viewing the detailed overview of Saf Tehnika's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Saf Tehnika and its subsidiaries are engaged in the design, production, and distribution of microwave radio data transmission equipment thus offering an alternative to cable channels. The company offers products to mobile network operators, data service providers such as Internet service providers and telecommunications companies, as well as state institutions and private companies. The company also sells antennas, cables, OEM products, and other accessories purchased from other suppliers, as another structural unit. The company's segments are; CFIP, Integra, Spectrum, Compact, Aranet; and Other. It sells its product in Latvia, North and South America, Europe, CIS, Asia, Africa, and the Middle East, of which key sales revenue is generated from North and South America.
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