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. Birks Group's quick ratio for the quarter that ended in Sep. 2023 was 0.12.
Birks Group has a quick ratio of 0.12. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Birks Group's Quick Ratio or its related term are showing as below:
BGI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.07 Med: 0.12 Max: 0.65
Current: 0.12
During the past 13 years, Birks Group's highest Quick Ratio was 0.65. The lowest was 0.07. And the median was 0.12.
BGI's Quick Ratio is ranked worse than 96.6% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.865
vs BGI: 0.12
Birks Group Quick Ratio Historical Data
The historical data trend for Birks 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 Birks Group's Quick Ratio
For the Luxury Goods subindustry, Birks 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.
Birks Group's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Birks Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Birks Group's Quick Ratio falls into.
Birks 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.
Birks Group's Quick Ratio for the fiscal year that ended in Mar. 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.
Birks Group (AMEX:BGI) 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.
Birks Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Birks Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Birks Group Inc is a part of the leisure industry. The company designs, develops, produces, and retails fine jewelry, timepieces, and gifts. Its operating segment includes Retail and other. The company generates maximum revenue from the Retail segment. Its retail segment consists of retail operations whereby it operates approximately 21 stores in Canada under the Maison Birks brand, one store under the Brinkhaus brand, one store under the Graff brand, and one store under the Patek Phillippe brand. The other segment consists mainly of wholesale business, e-commerce business, and gold exchange business.
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