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. United States Cellular's quick ratio for the quarter that ended in Dec. 2023 was 1.33.
United States Cellular has a quick ratio of 1.33. It generally indicates good short-term financial strength.
The historical rank and industry rank for United States Cellular's Quick Ratio or its related term are showing as below:
USM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.18 Med: 1.86 Max: 2.84
Current: 1.33
During the past 13 years, United States Cellular's highest Quick Ratio was 2.84. The lowest was 1.18. And the median was 1.86.
USM's Quick Ratio is ranked better than 67.43% of 393
companies
in the Telecommunication Services industry
Industry Median: 0.96
vs USM: 1.33
United States Cellular Quick Ratio Historical Data
The historical data trend for United States Cellular'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.
United States Cellular Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Quick Ratio
1.88
2.84
1.59
1.22
1.33
United States Cellular Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
1.22
1.36
1.28
1.18
1.33
Competitive Comparison
For the Telecom Services subindustry, United States Cellular'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.
United States Cellular Quick Ratio Distribution
For the Telecommunication Services industry and Communication Services sector, United States Cellular's Quick Ratio distribution charts can be found below:
* The bar in red indicates where United States Cellular's Quick Ratio falls into.
United States Cellular 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.
United States Cellular's Quick Ratio for the fiscal year that ended in Dec. 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.
United States Cellular (NYSE:USM) 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.
United States Cellular Quick Ratio Related Terms
Thank you for viewing the detailed overview of United States Cellular's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
United States Cellular (United States Cellular) Business Description
U.S. Cellular is a regional wireless carrier that serves about 5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.
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