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. Vapor Group's quick ratio for the quarter that ended in Dec. 2017 was 0.20.
Vapor Group has a quick ratio of 0.20. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Vapor Group's Quick Ratio or its related term are showing as below:
VPOR's Quick Ratio is not ranked *
in the Tobacco Products industry.
Industry Median: 0.875 * Ranked among companies with meaningful Quick Ratio only.
Vapor Group Quick Ratio Historical Data
The historical data trend for Vapor 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 Vapor Group's Quick Ratio
For the Tobacco subindustry, Vapor 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.
Vapor Group's Quick Ratio Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Vapor Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vapor Group's Quick Ratio falls into.
Vapor 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.
Vapor Group's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
Vapor Group (OTCPK:VPOR) 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.
Vapor Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vapor Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vapor Group Inc is engaged in designing, manufacturing, and marketing of vaporizers and electronic cigarettes and e-liquids. The company also markets consumer products including the Whizboard brand of scooters and Hoverkart accessories sold by Smart Wheels. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123, and The Vapor Products brands. All products are sold nationwide through distributors and directly to consumers through company-owned websites.
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