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. Ellie Mae's quick ratio for the quarter that ended in Dec. 2018 was 4.62.
Ellie Mae has a quick ratio of 4.62. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ellie Mae's Quick Ratio or its related term are showing as below:
ELLI's Quick Ratio is not ranked *
in the Software industry.
Industry Median: 1.67 * Ranked among companies with meaningful Quick Ratio only.
Ellie Mae Quick Ratio Historical Data
The historical data trend for Ellie Mae'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 Software - Application subindustry, Ellie Mae'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.
Ellie Mae's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Ellie Mae's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ellie Mae's Quick Ratio falls into.
Ellie Mae 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.
Ellie Mae's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
Ellie Mae (NYSE:ELLI) 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.
Ellie Mae Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ellie Mae's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ellie Mae Inc is a provider of on-demand software solutions and services for the residential mortgage industry. Its solutions provide a system to allow banks, credit unions, and mortgage lenders to originate and fund mortgages. The company's solutions include customer relationship management, loan processing, underwriting, compliance, and overall enterprise management capabilities. The company derives revenue from transaction-based fees and subscription fees to its Software-as-a-Service solutions, which are typically sold on an annual basis. All of the firm's revenue is generated in the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ELLI has been successfully added to your 