US Foods Holding has a quick ratio of 0.78. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for US Foods Holding's Quick Ratio or its related term are showing as below:
USFD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.75 Med: 0.8 Max: 1.11
Current: 0.78
During the past 12 years, US Foods Holding's highest Quick Ratio was 1.11. The lowest was 0.75. And the median was 0.80.
USFD's Quick Ratio is ranked worse than 55.7% of 316
companies
in the Retail - Defensive industry
Industry Median: 0.89
vs USFD: 0.78
US Foods Holding Quick Ratio Historical Data
The historical data trend for US Foods Holding'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 US Foods Holding's Quick Ratio
For the Food Distribution subindustry, US Foods Holding'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.
US Foods Holding's Quick Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Quick Ratio distribution charts can be found below:
* The bar in red indicates where US Foods Holding's Quick Ratio falls into.
US Foods Holding 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.
US Foods Holding's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
US Foods Holding (NYSE:USFD) 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.
US Foods Holding Quick Ratio Related Terms
Thank you for viewing the detailed overview of US Foods Holding's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
US Foods Holding (US Foods Holding) Business Description
us Foods is the second-largest U.S. food service distributor behind Sysco, holding 11% market share of the highly fragmented food service distribution industry. us Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. After Sysco's attempt to purchase us Foods failed to gain federal approval in 2015, us Foods entered the public market via an initial public offering.
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