Tel Instrument Electronics has a quick ratio of 0.53. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Tel Instrument Electronics's Quick Ratio or its related term are showing as below:
TIKK's Quick Ratio is not ranked *
in the Aerospace & Defense industry.
Industry Median: 1.3 * Ranked among companies with meaningful Quick Ratio only.
Tel Instrument Electronics (OTCPK:TIKK) 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.
Tel Instrument Electronics Quick Ratio Related Terms
Tel Instrument Electronics 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 Aerospace & Defense subindustry, Tel Instrument Electronics'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.
Tel Instrument Electronics Quick Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tel Instrument Electronics's Quick Ratio falls into.
Tel Instrument Electronics 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.
Tel Instrument Electronics (TIKK) has a Quick Ratio of 0.53 as of Dec. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Tel Instrument Electronics and its competitors.
Is Tel Instrument Electronics' Quick Ratio too high?
Tel Instrument Electronics' current Quick Ratio is 0.53. The Aerospace & Defense industry median Quick Ratio is 1.30. Tel Instrument Electronics' value of 0.53 is 59.2% below this industry median. Overall, Tel Instrument Electronics has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Tel Instrument Electronics' Quick Ratio compare to BLIS and HWKE?
Tel Instrument Electronics' Quick Ratio of 0.53 can be compared against companies in the Aerospace & Defense industry. The industry median Quick Ratio is 1.30. Tel Instrument Electronics' value of 0.53 is 59.2% 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 an Aerospace & Defense company?
The median Quick Ratio among Aerospace & Defense companies is 1.30, based on 357 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. Tel Instrument Electronics's current Quick Ratio of 0.53 is 59.2% 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 Tel Instrument Electronics and its competitors. For the Aerospace & Defense industry, the median Quick Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tel Instrument Electronics's current Quick Ratio is 0.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tel Instrument Electronics stock overvalued right now?
Tel Instrument Electronics (TIKK) has a current Quick Ratio of 0.53. The current Quick Ratio is 0.53 and 59.2% below the Aerospace & Defense industry median of 1.30. Tel Instrument Electronics' overall GF Score™ is 65/100. 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 Tel Instrument Electronics (TIKK), the current Quick Ratio is 0.53 as of Dec. 2024. 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.
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures, and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The Avionics government segment, which derives key revenue, consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. Geographically, the company generates a majority of its revenue from the United States and the rest from international markets.
65GF Score
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