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. Amer Sports Oyj's quick ratio for the quarter that ended in Dec. 2018 was 1.13.
Amer Sports Oyj has a quick ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Amer Sports Oyj's Quick Ratio or its related term are showing as below:
AGPDF's Quick Ratio is not ranked *
in the Travel & Leisure industry.
Industry Median: 1.1 * Ranked among companies with meaningful Quick Ratio only.
Amer Sports Oyj Quick Ratio Historical Data
The historical data trend for Amer Sports Oyj'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 Amer Sports Oyj's Quick Ratio
For the Leisure subindustry, Amer Sports Oyj'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.
Amer Sports Oyj's Quick Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Amer Sports Oyj's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Amer Sports Oyj's Quick Ratio falls into.
Amer Sports Oyj 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.
Amer Sports Oyj's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
Amer Sports Oyj (OTCPK:AGPDF) 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.
Amer Sports Oyj Quick Ratio Related Terms
Thank you for viewing the detailed overview of Amer Sports Oyj's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Amer Sports Oyj (Amer Sports Oyj) Business Description
Amer Sports Oyj is a manufacturer of sporting goods across brands including Salomon, Wilson, and Atomic. The company organises itself into three segments: outdoor, ball sports, and fitness. The outdoor segment, which contributes the majority of company revenue, manufactures and supplies footwear, apparel, winter sports equipment, cycling components, and sports instruments. The ball sports segment, the next most significant contributor to consolidated revenue, includes racquets and team sports equipment, and golf equipment. The fitness segment manufactures and supplies fitness equipment. Europe, the Middle East, and Africa, or EMEA, and the Americas are the most significant geographical markets, providing roughly equal contributions to net sales, followed by Asia-Pacific.
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