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MercadoLibre (NAS:MELI) Quick Ratio

: 1.31 (As of Sep. 2022)
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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. MercadoLibre's quick ratio for the quarter that ended in Sep. 2022 was 1.31.

MercadoLibre has a quick ratio of 1.31. It generally indicates good short-term financial strength.

The historical rank and industry rank for MercadoLibre's Quick Ratio or its related term are showing as below:

MELI' s Quick Ratio Range Over the Past 10 Years
Min: 0.92   Med: 1.51   Max: 2.97
Current: 1.31

During the past 13 years, MercadoLibre's highest Quick Ratio was 2.97. The lowest was 0.92. And the median was 1.51.

MELI's Quick Ratio is ranked better than
68.74% of 1110 companies
in the Retail - Cyclical industry
Industry Median: 0.85 vs MELI: 1.31

MercadoLibre Quick Ratio Historical Data

The historical data trend for MercadoLibre'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.

* Premium members only.

MercadoLibre Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.33 1.29 2.16 1.44 1.36

MercadoLibre Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 1.18 1.36 1.36 1.27 1.31

Competitive Comparison

For the Internet Retail subindustry, MercadoLibre'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.

   

MercadoLibre Quick Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Quick Ratio distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Quick Ratio falls in comparison to its industry or sector. The grey bar indicates the Quick Ratio's extreme value range as defined by GuruFocus.



MercadoLibre 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.

MercadoLibre's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(8174.979-253.077)/5836.702
=1.36

MercadoLibre's Quick Ratio for the quarter that ended in Sep. 2022 is calculated as

Quick Ratio (Q: Sep. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(9351-160)/7002
=1.31

* 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.


MercadoLibre  (NAS:MELI) 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.


MercadoLibre Quick Ratio Related Terms

Thank you for viewing the detailed overview of MercadoLibre's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre (NAS:MELI) Business Description

MercadoLibre logo
Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 140 million active users and 1 million active sellers as of the end of 2021 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Meyer Malka director C/O MERCADOLIBRE, INC., ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1C1430CRG
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Javier Olivan director 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Susan Segal director
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN

MercadoLibre (NAS:MELI) Headlines

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