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. DDC Enterprise's quick ratio for the quarter that ended in Sep. 2023 was 0.00.
DDC Enterprise has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for DDC Enterprise's Quick Ratio or its related term are showing as below:
DDC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.53 Max: 0.62
Current: 0.53
During the past 3 years, DDC Enterprise's highest Quick Ratio was 0.62. The lowest was 0.47. And the median was 0.53.
DDC's Quick Ratio is ranked worse than 80.12% of 1906
companies
in the Consumer Packaged Goods industry
Industry Median: 1.03
vs DDC: 0.53
DDC Enterprise Quick Ratio Historical Data
The historical data trend for DDC Enterprise'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 DDC Enterprise's Quick Ratio
For the Packaged Foods subindustry, DDC Enterprise'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.
DDC Enterprise's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, DDC Enterprise's Quick Ratio distribution charts can be found below:
* The bar in red indicates where DDC Enterprise's Quick Ratio falls into.
DDC Enterprise 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.
DDC Enterprise's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
DDC Enterprise (AMEX:DDC) 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.
DDC Enterprise Quick Ratio Related Terms
Thank you for viewing the detailed overview of DDC Enterprise's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
DDC Enterprise (DDC Enterprise) Business Description
DDC Enterprise Ltd is a content driven consumer brand offering easy, convenient ready-to-heat , ready-to-cook and plant-based meal products i.e. meal products consisting largely or solely of vegetables, fruits, grains and other foods derived from plant-based protein, rather than animal protein) while promoting healthier lifestyle choices to Millennial and Generation Z customer-base. It is also engaged in the provision of advertising services and the operation of experience stores to offer cooking classes.
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