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Vistas Media Acquisition Co (NAS:VMACW) 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.
Vistas Media Acquisition Co Quick Ratio Related Terms
Vistas Media Acquisition Co 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.
Vistas Media Acquisition Co Quick Ratio Chart
Vistas Media Acquisition Co Annual Data
Trend
Dec20
Quick Ratio
4.58
Vistas Media Acquisition Co Semi-Annual Data
Jun20
Sep20
Jun21
Quick Ratio
1.39
26.47
1.89
VMACW vs : Quick Ratio Comparison
For the Shell Companies subindustry, Vistas Media Acquisition 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.
Vistas Media Acquisition Co Quick Ratio vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Vistas Media Acquisition Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vistas Media Acquisition Co's Quick Ratio falls into.
Vistas Media Acquisition 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.
* 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.
Vistas Media Acquisition Co (VMACW) has a Quick Ratio of 26.47 as of Sep. 2020. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Vistas Media Acquisition Co and its competitors. This is 1514% above median its historical median of 1.64. Over the past decade, Vistas Media Acquisition Co's Quick Ratio has ranged from 1.39 to 1.89.
Is Vistas Media Acquisition Co's Quick Ratio too high?
Vistas Media Acquisition Co's current Quick Ratio of 26.47 is 1514% above median its 10-year median of 1.64. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 1.89. The Diversified Financial Services industry median Quick Ratio is 2.57. Vistas Media Acquisition Co's value of 26.47 is 930% above this industry median.
How does Vistas Media Acquisition Co's Quick Ratio compare to ?
Vistas Media Acquisition Co's Quick Ratio of 26.47 can be compared against companies in the Diversified Financial Services industry. The industry median Quick Ratio is 2.57. Vistas Media Acquisition Co's value of 26.47 is 930% above this benchmark. Historically, Vistas Media Acquisition Co's own Quick Ratio has ranged from 1.39 to 1.89 over the past decade. While the company's 10-year median is 1.64 vs. the industry median of 2.57, Vistas Media Acquisition Co has consistently been above 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 Diversified Financial Services company?
The median Quick Ratio among Diversified Financial Services companies is 2.57, based on 466 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. Vistas Media Acquisition Co's current Quick Ratio of 26.47 is 930% 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 Vistas Media Acquisition Co and its competitors. For the Diversified Financial Services industry, the median Quick Ratio is 2.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vistas Media Acquisition Co's current Quick Ratio is 26.47, which is 1514% above median its own 10-year median of 1.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vistas Media Acquisition Co stock overvalued right now?
Vistas Media Acquisition Co (VMACW) has a current Quick Ratio of 26.47. The current Quick Ratio is 26.47, which is 1514% above median its 10-year median of 1.64 and 930% above the Diversified Financial Services industry median of 2.57. 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 Vistas Media Acquisition Co (VMACW), the current Quick Ratio is 26.47 as of Sep. 2020. 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.
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