TSCC (Technology Solutions Co) Quick Ratio: 8.16 (As of Dec. 2008)


What is Technology Solutions Co Quick Ratio?

Technology Solutions Co TSCC Quick Ratio is 8.16 as of Dec. 2008.

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. Technology Solutions Co's quick ratio for the quarter that ended in Dec. 2008 was 8.16.

Technology Solutions Co has a quick ratio of 8.16. It generally indicates good short-term financial strength.

The historical rank and industry rank for Technology Solutions Co's Quick Ratio or its related term are showing as below:

TSCC's Quick Ratio is not ranked *
in the Software industry.
Industry Median: 1.7
* Ranked among companies with meaningful Quick Ratio only.

Technology Solutions Co  (OTCPK:TSCC) 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.

Technology Solutions Co Quick Ratio Related Terms

Technology Solutions Co Quick Ratio Historical Data

* Premium members only.

The historical data trend for Technology Solutions Co'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.

Technology Solutions Co Quick Ratio Chart

Technology Solutions Co Annual Data
Trend Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.27 3.42 3.16 2.80 8.16

Technology Solutions Co Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.80 2.98 4.74 7.00 8.16

TSCC vs SYSX: Quick Ratio Comparison

For the Information Technology Services subindustry, Technology Solutions Co'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.

Technology Solutions Co Quick Ratio vs Software Industry

For the Software industry and Technology sector, Technology Solutions Co's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Technology Solutions Co's Quick Ratio falls into.


Technology Solutions Co 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.

Technology Solutions Co's Quick Ratio for the fiscal year that ended in Dec. 2008 is calculated as

Quick Ratio (A: Dec. 2008 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(10.328-0)/1.266
=8.16

Technology Solutions Co's Quick Ratio for the quarter that ended in Dec. 2008 is calculated as

Quick Ratio (Q: Dec. 2008 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(10.328-0)/1.266
=8.16

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 8.16 mean?
Technology Solutions Co (TSCC) has a Quick Ratio of 8.16 as of Dec. 2008. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Technology Solutions Co and its competitors.
Is Technology Solutions Co's Quick Ratio too high?
Technology Solutions Co's current Quick Ratio is 8.16. The Software industry median Quick Ratio is 1.70. Technology Solutions Co's value of 8.16 is 380% above this industry median.
How does Technology Solutions Co's Quick Ratio compare to SYSX?
Technology Solutions Co's Quick Ratio of 8.16 can be compared against companies in the Software industry. The industry median Quick Ratio is 1.70. Technology Solutions Co's value of 8.16 is 380% above 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 Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,865 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. Technology Solutions Co's current Quick Ratio of 8.16 is 380% above 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 Technology Solutions Co and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Technology Solutions Co's current Quick Ratio is 8.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technology Solutions Co stock overvalued right now?
Technology Solutions Co (TSCC) has a current Quick Ratio of 8.16. The current Quick Ratio is 8.16 and 380% above the Software industry median of 1.70. 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 Technology Solutions Co (TSCC), the current Quick Ratio is 8.16 as of Dec. 2008. 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.

Technology Solutions Co Business Description

Address 55 East Monroe street, Suite 2600, Chicago, IL, USA, 60603
Technology Solutions Co provides business-consulting services across a broad range of industries and areas of expertise. The company provides business strategy and assessment services.