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. Ocado Group's quick ratio for the quarter that ended in Nov. 2023 was 2.27.
Ocado Group has a quick ratio of 2.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ocado Group's Quick Ratio or its related term are showing as below:
OCDDY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.36 Med: 1.65 Max: 4.7
Current: 2.27
During the past 13 years, Ocado Group's highest Quick Ratio was 4.70. The lowest was 0.36. And the median was 1.65.
OCDDY's Quick Ratio is ranked better than 85.13% of 316
companies
in the Retail - Defensive industry
Industry Median: 0.89
vs OCDDY: 2.27
Ocado Group Quick Ratio Historical Data
The historical data trend for Ocado Group'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 Ocado Group's Quick Ratio
For the Grocery Stores subindustry, Ocado Group'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.
Ocado Group's Quick Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Ocado Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ocado Group's Quick Ratio falls into.
Ocado Group 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.
Ocado Group's Quick Ratio for the fiscal year that ended in Nov. 2022 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.
Ocado Group (OTCPK:OCDDY) 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.
Ocado Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ocado Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ocado, one of the largest pure online grocers in the world, operates in two divisions. Ocado Retail is the group's online grocery business in the United Kingdom (joint venture with Marks & Spencer); it offers an extensive product range of over 55,000 items via its Ocado.com website and holds more than 15% of the U.K. online grocery market and approximately 2% of the total U.K. grocery market. Ocado Solutions is built on the Ocado Smart Platform, a modular, automated online retail fulfilment and delivery solution that involves the provision of software, fulfilment infrastructure, and support services to corporate clients for a variety of one-time and ongoing costs. OSP has allowed the company to work with some of the world's largest grocers, including Ocado's retail operation.
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