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. Ethan Allen Interiors's quick ratio for the quarter that ended in Mar. 2024 was 1.16.
Ethan Allen Interiors has a quick ratio of 1.16. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ethan Allen Interiors's Quick Ratio or its related term are showing as below:
ETD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.42 Med: 0.75 Max: 1.31
Current: 1.31
During the past 13 years, Ethan Allen Interiors's highest Quick Ratio was 1.31. The lowest was 0.42. And the median was 0.75.
ETD's Quick Ratio is ranked better than 55.5% of 427
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.22
vs ETD: 1.31
Ethan Allen Interiors Quick Ratio Historical Data
The historical data trend for Ethan Allen Interiors'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 Ethan Allen Interiors's Quick Ratio
For the Furnishings, Fixtures & Appliances subindustry, Ethan Allen Interiors'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.
Ethan Allen Interiors's Quick Ratio Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ethan Allen Interiors's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ethan Allen Interiors's Quick Ratio falls into.
Ethan Allen Interiors 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.
Ethan Allen Interiors's Quick Ratio for the fiscal year that ended in Jun. 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.
Ethan Allen Interiors (NYSE:ETD) 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.
Ethan Allen Interiors Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ethan Allen Interiors's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ethan Allen Interiors (Ethan Allen Interiors) Business Description
Ethan Allen Interiors Inc. is a U.S.-based company that manufactures and retails home furnishings & accessories. The firm conducts activities through its wholly owned subsidiary, Ethan Allen Global, Inc., which operates through its own subsidiaries. The company does business across North America, Europe, Asia, & the Middle East. The vast majority of the firm's products are produced in its U.S. plants. The company's activities are divided between its Wholesale unit which includes case goods, upholstered products, and home accents, & its Retail segment. The majority of revenue within Wholesale is generated by upholstered products, & the majority of revenue for the overall company is derived from the Retail segment. Geographically, the majority of the company's revenue is produced in the U.S.
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