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Japan Business Systems (TSE:5036) 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.
Japan Business Systems Quick Ratio Related Terms
Japan Business Systems 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.
TSE:5036 vs MSFT, ORCL, PLTR: Quick Ratio Comparison
For the Software - Infrastructure subindustry, Japan Business Systems'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.
Japan Business Systems Quick Ratio vs Software Industry
For the Software industry and Technology sector, Japan Business Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Japan Business Systems'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.
Japan Business Systems's Quick Ratio for the fiscal year that ended in Sep. 2025 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.
Japan Business Systems (TSE:5036) has a Quick Ratio of 1.17 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Japan Business Systems and its competitors. This is near median its historical median of 1.27. Over the past decade, Japan Business Systems' Quick Ratio has ranged from 1.17 to 1.57. According to the industry distribution chart, Japan Business Systems ranks #1974 out of 2876 companies in the Software industry, placing it in the top 68.6%.
Is Japan Business Systems' Quick Ratio too high?
Japan Business Systems' current Quick Ratio of 1.17 is near median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 1.57. The Software industry median Quick Ratio is 1.70. Japan Business Systems' value of 1.17 is 31.2% below this industry median. Based on the distribution chart, Japan Business Systems ranks #1974 out of 2876 companies in the Software industry, which is below the industry midpoint. Overall, Japan Business Systems has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japan Business Systems' Quick Ratio compare to MSFT and ORCL?
According to the Software industry distribution chart, Japan Business Systems ranks #1974 out of 2876 companies for Quick Ratio. This places Japan Business Systems in the lower half of its industry. The industry median Quick Ratio is 1.70. Japan Business Systems' value of 1.17 is 31.2% below this benchmark. Historically, Japan Business Systems' own Quick Ratio has ranged from 1.17 to 1.57 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 1.70, Japan Business Systems has consistently been below the industry average. 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 2,876 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. Japan Business Systems's current Quick Ratio of 1.17 is 31.2% 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 Japan Business Systems 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. Japan Business Systems's current Quick Ratio is 1.17, which is near median its own 10-year median of 1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Business Systems stock overvalued right now?
Based on GuruFocus' analysis, Japan Business Systems (TSE:5036) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,018.53, compared to a current price of 円1,600.00 — trading 20.7% below its estimated fair value. The current Quick Ratio is 1.17, which is near median its 10-year median of 1.27 and 31.2% below the Software industry median of 1.70. Japan Business Systems' overall GF Score™ is 77/100 with 3 warning signs to review. 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 Japan Business Systems (TSE:5036), the current Quick Ratio is 1.17 as of Mar. 2026. 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.
Is Japan Business Systems (TSE:5036) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Business Systems stock appears to be undervalued.
The current stock price of 円1,600.00 is trading 20.7% below its estimated GF Value™ of 円2,018.53.
GuruFocus considers Japan Business Systems to be Modestly Undervalued.
Key valuation signals for TSE:5036:
Quick Ratio: 1.17 (near median its 10-year median of 1.27)
GF Value™: 円2,018.53 vs. price of 円1,600.00 (20.7% below fair value)
Industry Position: 31.2% below the Software median (#1974 of 2876)
No single metric tells the full story. See the TSE:5036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Business Systems Inc operates in the information technology sector. The company works with cloud companies, various hardware and software manufacturers, research institutes and universities, etc., to provide cloud services to its clients. It is a cloud services integrator that provides consulting and IT services that can maximize customer performance by utilizing cloud services centered on Microsoft. The various services offered by the company include digital transformation, cloud infrastructure solutions, SAP system solutions, Microsoft 365 and Power platform-related solutions, and others. Its reportable segments are; Cloud Integration, which derives key revenue, and Cloud Services. Geographically, the company operates in Japan.
77GF Score
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