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. MTGE Investment's quick ratio for the quarter that ended in Jun. 2018 was 14.61.
MTGE Investment has a quick ratio of 14.61. It generally indicates good short-term financial strength.
The historical rank and industry rank for MTGE Investment's Quick Ratio or its related term are showing as below:
MTGE's Quick Ratio is not ranked *
in the REITs industry.
Industry Median: 0.91 * Ranked among companies with meaningful Quick Ratio only.
MTGE Investment Quick Ratio Historical Data
The historical data trend for MTGE Investment'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 MTGE Investment's Quick Ratio
For the REIT - Diversified subindustry, MTGE Investment'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.
MTGE Investment's Quick Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, MTGE Investment's Quick Ratio distribution charts can be found below:
* The bar in red indicates where MTGE Investment's Quick Ratio falls into.
MTGE Investment 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.
MTGE Investment's Quick Ratio for the fiscal year that ended in Dec. 2017 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.
MTGE Investment (NAS:MTGE) 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.
MTGE Investment Quick Ratio Related Terms
Thank you for viewing the detailed overview of MTGE Investment's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
MTGE Investment (MTGE Investment) Business Description
MTGE Investment is a hybrid mortgage REIT that invests in, finances, and manages a portfolio of agency mortgage-backed securities, nonagency mortgage investments, and other real estate-related assets. Its residential mortgage-backed securities, or RMBS, include residential mortgage pass-through certificates and collateralised mortgage obligations. Its nonagency mortgage investments comprise RMBS backed by residential mortgages, as well as prime and nonprime residential mortgage loans. The company generates its revenue from the interest earned and lease payments received on its investment assets. MTGE Investment's assets are externally managed by a subsidiary of AGNC Investment.
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