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. VNET Group's quick ratio for the quarter that ended in Sep. 2024 was 0.83.
VNET Group has a quick ratio of 0.83. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for VNET Group's Quick Ratio or its related term are showing as below:
VNET'
s Quick Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.23 Max: 2.41
Current: 0.83
During the past 13 years, VNET Group's highest Quick Ratio was 2.41. The lowest was 0.67. And the median was 1.23.
VNET's Quick Ratio is ranked worse than 81.33% of 2823
companies
in the Software industry
Industry Median: 1.64
vs VNET: 0.83
VNET Group Quick Ratio Historical Data
The historical data trend for VNET Group'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 VNET Group's Quick Ratio
For the Information Technology Services subindustry, VNET Group'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.
VNET Group's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, VNET Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where VNET Group's Quick Ratio falls into.
VNET Group 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.
VNET Group'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.
VNET Group (NAS:VNET) 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.
VNET Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of VNET Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
VNET started as AsiaCloud in 1999 and moved to the data center business with its first self-developed data center opening in 2010. The firm listed (as 21Vianet) on the Nasdaq in April 2011, subsequently changing its name to VNET Group in 2021. It originally focused on providing data center services such as colocation and cloud services to retail clients in China, but added hyperscale customers in 2019 and now counts large Chinese hyperscalers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud as customers. At the end of June 2024, it had 48,516 self-built retail cabinets with the majority in Beijing, Shanghai, and the Greater Bay area. It also had 358 MW of wholesale capacity in service with a further 297 MW under construction and a further 489 MW held for future development.
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