Switch to:
Educational Development Corp  (NAS:EDUC) Quick Ratio: 0.20 (As of Aug. 2017)

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. Educational Development Corp's quick ratio for the quarter that ended in Aug. 2017 was 0.20.

Educational Development Corp has a quick ratio of 0.20. It indicates that the company cannot currently fully pay back its current liabilities.

NAS:EDUC' s Quick Ratio Range Over the Past 10 Years
Min: 0.14   Max: 2.34
Current: 0.2

0.14
2.34

During the past 13 years, Educational Development Corp's highest Quick Ratio was 2.34. The lowest was 0.14. And the median was 0.88.

NAS:EDUC's Quick Ratio is ranked lower than
99% of the 184 Companies
in the Global industry.

( Industry Median: 1.37 vs. NAS:EDUC: 0.20 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Educational Development Corp Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.11 1.01 0.72 0.27 0.16

Educational Development Corp Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.24 0.14 0.16 0.19 0.20

Competitive Comparison
* 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.


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.

Educational Development Corp's Quick Ratio for the fiscal year that ended in Feb. 2017 is calculated as

Quick Ratio (A: Feb. 2017 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(39.031-34.253)/30.097
=0.16

Educational Development Corp's Quick Ratio for the quarter that ended in Aug. 2017 is calculated as

Quick Ratio (Q: Aug. 2017 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(33.92-29.372)/22.93
=0.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK