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. LCI Industries's quick ratio for the quarter that ended in Dec. 2023 was 0.88.
LCI Industries has a quick ratio of 0.88. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for LCI Industries's Quick Ratio or its related term are showing as below:
FRA:0DI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.7 Med: 0.87 Max: 1.2
Current: 0.88
During the past 13 years, LCI Industries's highest Quick Ratio was 1.20. The lowest was 0.70. And the median was 0.87.
FRA:0DI's Quick Ratio is ranked worse than 61.29% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs FRA:0DI: 0.88
LCI Industries Quick Ratio Historical Data
The historical data trend for LCI Industries'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 LCI Industries's Quick Ratio
For the Recreational Vehicles subindustry, LCI Industries'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.
LCI Industries's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, LCI Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where LCI Industries's Quick Ratio falls into.
LCI Industries 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.
LCI Industries's Quick Ratio for the fiscal year that ended in Dec. 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.
LCI Industries (FRA:0DI) 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.
LCI Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of LCI Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo. It has two reportable segments the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold primarily to major manufacturers of RVs such as Thor Industries, Forest River, Winnebago and other RV OEMs, and to manufacturers in adjacent industries.
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