Nexxchange AGWBO:IPO Quick Ratio is 15.37 as of Dec. 2014, which is 58% below its 10-year median of 36.54. The stock has 3 warning signs investors should review.
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. Nexxchange AG's quick ratio for the quarter that ended in Dec. 2014 was 15.37.
Nexxchange AG has a quick ratio of 15.37. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nexxchange AG's Quick Ratio or its related term are showing as below:
WBO:IPO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.64 Med: 36.54 Max: 63
Current: 15.37
During the past 4 years, Nexxchange AG's highest Quick Ratio was 63.00. The lowest was 0.64. And the median was 36.54.
WBO:IPO's Quick Ratio is not ranked
in the Asset Management industry.
Industry Median: 2.815
vs WBO:IPO: 15.37
Nexxchange AG (WBO:IPO) 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.
Nexxchange AG Quick Ratio Related Terms
Nexxchange AG Quick Ratio Historical Data
* Premium members only.
The historical data trend for Nexxchange AG'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.
Nexxchange AG Quick Ratio Chart
Nexxchange AG Annual Data
Trend
Dec11
Dec12
Dec13
Dec14
Quick Ratio
57.71
63.00
0.64
15.37
Nexxchange AG Semi-Annual Data
Dec11
Dec12
Dec13
Dec14
Quick Ratio
57.71
63.00
0.64
15.37
Nexxchange AG Quick Ratio Competitor Comparison
For the Asset Management subindustry, Nexxchange AG'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.
Nexxchange AG Quick Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Nexxchange AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nexxchange AG'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.
Nexxchange AG's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Nexxchange AG (WBO:IPO) has a Quick Ratio of 15.37 as of Dec. 2014. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Nexxchange AG and its competitors. This is 58% below median its historical median of 36.54. Over the past decade, Nexxchange AG's Quick Ratio has ranged from 0.64 to 63.00.
Is Nexxchange AG's Quick Ratio too high?
Nexxchange AG's current Quick Ratio of 15.37 is 58% below median its 10-year median of 36.54. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 63.00. The Asset Management industry median Quick Ratio is 2.82. Nexxchange AG's value of 15.37 is 446% above this industry median.
How does Nexxchange AG's Quick Ratio compare to competitors?
Nexxchange AG's Quick Ratio of 15.37 can be compared against companies in the Asset Management industry. The industry median Quick Ratio is 2.82. Nexxchange AG's value of 15.37 is 446% above this benchmark. Historically, Nexxchange AG's own Quick Ratio has ranged from 0.64 to 63.00 over the past decade. While the company's 10-year median is 36.54 vs. the industry median of 2.82, Nexxchange AG 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 an Asset Management company?
The median Quick Ratio among Asset Management companies is 2.82, based on 708 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. Nexxchange AG's current Quick Ratio of 15.37 is 446% 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 Nexxchange AG and its competitors. For the Asset Management industry, the median Quick Ratio is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexxchange AG's current Quick Ratio is 15.37, which is 58% below median its own 10-year median of 36.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexxchange AG stock overvalued right now?
Nexxchange AG (WBO:IPO) has a current Quick Ratio of 15.37. The current Quick Ratio is 15.37, which is 58% below median its 10-year median of 36.54 and 446% above the Asset Management industry median of 2.82. 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 Nexxchange AG (WBO:IPO), the current Quick Ratio is 15.37 as of Dec. 2014. 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.
Nexxchange AG is an investment service provider. It provides investment advice to potential investors on behalf of small companies that are planning their initial public offering.
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