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. Franklin Covey Co's quick ratio for the quarter that ended in Feb. 2024 was 0.85.
Franklin Covey Co has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Franklin Covey Co's Quick Ratio or its related term are showing as below:
FC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.84 Med: 1.04 Max: 2.87
Current: 0.85
During the past 13 years, Franklin Covey Co's highest Quick Ratio was 2.87. The lowest was 0.84. And the median was 1.04.
FC's Quick Ratio is ranked worse than 67.79% of 267
companies
in the Education industry
Industry Median: 1.25
vs FC: 0.85
Franklin Covey Co Quick Ratio Historical Data
The historical data trend for Franklin Covey Co'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 Franklin Covey Co's Quick Ratio
For the Education & Training Services subindustry, Franklin Covey Co'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.
Franklin Covey Co's Quick Ratio Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Franklin Covey Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Franklin Covey Co's Quick Ratio falls into.
Franklin Covey Co 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.
Franklin Covey Co's Quick Ratio for the fiscal year that ended in Aug. 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.
Franklin Covey Co (NYSE:FC) 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.
Franklin Covey Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Franklin Covey Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Franklin Covey Co (Franklin Covey Co) Business Description
Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice, and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.
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