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. Poshmark's quick ratio for the quarter that ended in Sep. 2022 was 2.72.
Poshmark has a quick ratio of 2.72. It generally indicates good short-term financial strength.
The historical rank and industry rank for Poshmark's Quick Ratio or its related term are showing as below:
POSH'
s Quick Ratio Range Over the Past 10 Years
Min: 1.19 Med: 2.86 Max: 3.29
Current: 2.72
During the past 4 years, Poshmark's highest Quick Ratio was 3.29. The lowest was 1.19. And the median was 2.86.
POSH's Quick Ratio is not ranked
in the Retail - Cyclical industry.
Industry Median: 0.865
vs POSH: 2.72
Poshmark Quick Ratio Historical Data
The historical data trend for Poshmark'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.
For the Internet Retail subindustry, Poshmark'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.
Poshmark's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Poshmark's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Poshmark's Quick Ratio falls into.
Poshmark 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.
Poshmark's Quick Ratio for the fiscal year that ended in Dec. 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.
Poshmark (NAS:POSH) 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.
Poshmark Quick Ratio Related Terms
Thank you for viewing the detailed overview of Poshmark's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Poshmark is one of the largest players in a quickly growing e-commerce resale space, connecting more than 30 million active users on a platform that sells men's and women's apparel, accessories, shoes, and more recently consumer electronics and pet products. The marketplace operates in four countries--the U.S., Canada, Australia, and India--with a capital-light, peer-to-peer model that dovetails nicely with prevailing trends toward social commerce, apparel resale, and an ongoing pivot toward the e-commerce channel. With $1.8 billion in 2021 gross merchandise volume, or GMV, we estimate that the firm captured about 13%-14% of the domestic online resale market, with rolling lockdowns and tangled supply chains providing a meaningful impetus for channel trial during 2020 and 2021.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
POSH has been successfully added to your 