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. Truck Hero's quick ratio for the quarter that ended in Jun. 2015 was 0.84.
Truck Hero has a quick ratio of 0.84. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Truck Hero's Quick Ratio or its related term are showing as below:
TRUK's Quick Ratio is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.05 * Ranked among companies with meaningful Quick Ratio only.
Truck Hero (NYSE:TRUK) 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.
Truck Hero Quick Ratio Related Terms
Truck Hero Quick Ratio Historical Data
* Premium members only.
The historical data trend for Truck Hero'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.
Truck Hero Quick Ratio Chart
Truck Hero Annual Data
Trend
Dec13
Dec14
Quick Ratio
1.28
1.76
Truck Hero Semi-Annual Data
Dec13
Jun14
Jun15
Quick Ratio
1.28
0.00
0.84
TRUK vs IMLE, PFTI, OMTK: Quick Ratio Comparison
For the Auto Parts subindustry, Truck Hero'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.
Truck Hero Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Truck Hero's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Truck Hero'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.
Truck Hero's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Truck Hero (TRUK) has a Quick Ratio of 0.84 as of Jun. 2015. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Truck Hero and its competitors.
Is Truck Hero's Quick Ratio too high?
Truck Hero's current Quick Ratio is 0.84. The Vehicles & Parts industry median Quick Ratio is 1.05. Truck Hero's value of 0.84 is 20% below this industry median.
How does Truck Hero's Quick Ratio compare to IMLE and PFTI?
Truck Hero's Quick Ratio of 0.84 can be compared against companies in the Vehicles & Parts industry. The industry median Quick Ratio is 1.05. Truck Hero's value of 0.84 is 20% 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 Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.05, based on 1,337 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. Truck Hero's current Quick Ratio of 0.84 is 20% 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 Truck Hero and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Truck Hero's current Quick Ratio is 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Truck Hero stock overvalued right now?
Truck Hero (TRUK) has a current Quick Ratio of 0.84. The current Quick Ratio is 0.84 and 20% below the Vehicles & Parts industry median of 1.05. 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 Truck Hero (TRUK), the current Quick Ratio is 0.84 as of Jun. 2015. 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.
Truck Hero Inc was incorporated in Delaware in November 2007. The Company designs, manufactures and markets consumer accessories for pickup trucks. It offers a portfolio of branded and private label truck bed covers and accessories that include truck bed covers, truck caps, and bed liners custom-made fiberglass and aluminum truck caps and fiberglass truck bed covers to consumer and commercial markets and a line of retractable aluminum slat and hard-rolling truck bed covers, as well as bed rails and storage boxes. It also sells third party branded vehicle accessories online, which include floor mats, grill guards, steps, tool boxes, and towing product. The Company competes with the companies that manufacture and retail accessory and appearance products. It is subject to governmental laws and regulations.
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