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. Rocket Lab USA's quick ratio for the quarter that ended in Dec. 2023 was 1.65.
Rocket Lab USA has a quick ratio of 1.65. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rocket Lab USA's Quick Ratio or its related term are showing as below:
RKLB'
s Quick Ratio Range Over the Past 10 Years
Min: 1.38 Med: 2.58 Max: 7.55
Current: 1.65
During the past 4 years, Rocket Lab USA's highest Quick Ratio was 7.55. The lowest was 1.38. And the median was 2.58.
RKLB's Quick Ratio is ranked better than 68.05% of 313
companies
in the Aerospace & Defense industry
Industry Median: 1.09
vs RKLB: 1.65
Rocket Lab USA Quick Ratio Historical Data
The historical data trend for Rocket Lab USA'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.
Rocket Lab USA Annual Data
Trend
Dec20
Dec21
Dec22
Dec23
Quick Ratio
1.38
7.55
3.50
1.65
Rocket Lab USA Quarterly Data
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
3.50
2.72
1.50
1.33
1.65
Competitive Comparison
For the Aerospace & Defense subindustry, Rocket Lab USA'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.
Rocket Lab USA Quick Ratio Distribution
For the Aerospace & Defense industry and Industrials sector, Rocket Lab USA's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rocket Lab USA's Quick Ratio falls into.
Rocket Lab USA 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.
Rocket Lab USA'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.
Rocket Lab USA (NAS:RKLB) 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.
Rocket Lab USA Quick Ratio Related Terms
Thank you for viewing the detailed overview of Rocket Lab USA's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rocket Lab USA (Rocket Lab USA) Business Description
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defence, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered more than 100 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments being Launch Services and Space systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
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