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. Duck Creek Technologies's quick ratio for the quarter that ended in May. 2022 was 6.95.
Duck Creek Technologies has a quick ratio of 6.95. It generally indicates good short-term financial strength.
The historical rank and industry rank for Duck Creek Technologies's Quick Ratio or its related term are showing as below:
DCT'
s Quick Ratio Range Over the Past 10 Years
Min: 0.98 Med: 5.48 Max: 7.18
Current: 6.95
During the past 5 years, Duck Creek Technologies's highest Quick Ratio was 7.18. The lowest was 0.98. And the median was 5.48.
DCT's Quick Ratio is ranked better than 90.4% of 2708
companies
in the Software industry
Industry Median: 1.89
vs DCT: 6.95
Duck Creek Technologies Quick Ratio Historical Data
The historical data trend for Duck Creek 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.
* Premium members only.
Duck Creek Technologies Annual Data
Trend
Aug17
Aug18
Aug19
Aug20
Aug21
Quick Ratio
-
1.19
0.98
4.60
5.15
Duck Creek Technologies Quarterly Data
Aug17
Aug18
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Quick Ratio
5.48
5.15
7.13
7.18
6.95
Competitive Comparison
For the Software - Application subindustry, Duck Creek 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.
Duck Creek Technologies Quick Ratio Distribution
For the Software industry and Technology sector, Duck Creek Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Duck Creek Technologies's Quick Ratio falls into.
Duck Creek 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.
Duck Creek Technologies's Quick Ratio for the fiscal year that ended in Aug. 2021 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.
Duck Creek Technologies (NAS:DCT) 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.
Duck Creek Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Duck Creek Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Duck Creek Technologies Inc is a technology company. The company is one of the leading SaaS provider of core systems for the P&C insurance industry. The product portfolio includes distribution management, reinsurance management, digital management, and other services. Geographically, it derives a majority of revenue from the United States.
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