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. Ocean Power Technologies's quick ratio for the quarter that ended in Jan. 2024 was 2.00.
Ocean Power Technologies has a quick ratio of 2.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ocean Power Technologies's Quick Ratio or its related term are showing as below:
OPTT'
s Quick Ratio Range Over the Past 10 Years
Min: 1.27 Med: 4.63 Max: 31.43
Current: 2
During the past 13 years, Ocean Power Technologies's highest Quick Ratio was 31.43. The lowest was 1.27. And the median was 4.63.
OPTT's Quick Ratio is ranked better than 68.98% of 3024
companies
in the Industrial Products industry
Industry Median: 1.38
vs OPTT: 2.00
Ocean Power Technologies Quick Ratio Historical Data
The historical data trend for Ocean Power Technologies'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.
For the Specialty Industrial Machinery subindustry, Ocean Power Technologies'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.
Ocean Power Technologies Quick Ratio Distribution
For the Industrial Products industry and Industrials sector, Ocean Power Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ocean Power Technologies's Quick Ratio falls into.
Ocean Power Technologies 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.
Ocean Power Technologies's Quick Ratio for the fiscal year that ended in Apr. 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.
Ocean Power Technologies (AMEX:OPTT) 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.
Ocean Power Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ocean Power Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ocean Power Technologies (Ocean Power Technologies) Business Description
Ocean Power Technologies Inc provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. It provides ocean data collection and reporting, marine power, offshore communications, and Maritime Domain Awareness System (MDAS) products, integrated solutions, and consulting services. The company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power, and other industries. The company has operations in North and South America, Europe, Asia and Australia.
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