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Shopify Quick Ratio

: 11.17 (As of Jun. 2022)
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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. Shopify's quick ratio for the quarter that ended in Jun. 2022 was 11.17.

Shopify has a quick ratio of 11.17. It generally indicates good short-term financial strength.

The historical rank and industry rank for Shopify's Quick Ratio or its related term are showing as below:

SHOP' s Quick Ratio Range Over the Past 10 Years
Min: 2.78   Med: 11.19   Max: 17.87
Current: 11.17

During the past 10 years, Shopify's highest Quick Ratio was 17.87. The lowest was 2.78. And the median was 11.19.

SHOP's Quick Ratio is ranked better than
95.02% of 2713 companies
in the Software industry
Industry Median: 1.88 vs SHOP: 11.17

Shopify Quick Ratio Historical Data

The historical data trend for Shopify'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.

Shopify Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.82 15.35 8.67 15.69 12.15

Shopify Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.55 13.97 12.15 11.84 11.17

Competitive Comparison

For the Software - Application subindustry, Shopify'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.

   

Shopify Quick Ratio Distribution

For the Software industry and Technology sector, Shopify's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Shopify's Quick Ratio falls into.



Shopify 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.

Shopify's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(8539.32-0)/702.733
=12.15

Shopify's Quick Ratio for the quarter that ended in Jun. 2022 is calculated as

Quick Ratio (Q: Jun. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7857.764-0)/703.208
=11.17

* 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.


Shopify  (NYSE:SHOP) 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.


Shopify Quick Ratio Related Terms

Thank you for viewing the detailed overview of Shopify's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify Business Description

Shopify logo
Traded in Other Exchanges
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify Headlines

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