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. Arcadis NV's quick ratio for the quarter that ended in Dec. 2023 was 1.20.
Arcadis NV has a quick ratio of 1.20. It generally indicates good short-term financial strength.
The historical rank and industry rank for Arcadis NV's Quick Ratio or its related term are showing as below:
ARCVF'
s Quick Ratio Range Over the Past 10 Years
Min: 1.12 Med: 1.23 Max: 1.52
Current: 1.2
During the past 13 years, Arcadis NV's highest Quick Ratio was 1.52. The lowest was 1.12. And the median was 1.23.
ARCVF's Quick Ratio is ranked worse than 54.62% of 1677
companies
in the Construction industry
Industry Median: 1.28
vs ARCVF: 1.20
Arcadis NV Quick Ratio Historical Data
The historical data trend for Arcadis NV'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 Arcadis NV's Quick Ratio
For the Engineering & Construction subindustry, Arcadis NV'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.
Arcadis NV's Quick Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Arcadis NV's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Arcadis NV's Quick Ratio falls into.
Arcadis NV 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.
Arcadis NV'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.
Arcadis NV (OTCPK:ARCVF) 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.
Arcadis NV Quick Ratio Related Terms
Thank you for viewing the detailed overview of Arcadis NV's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Arcadis NV designs, engineers, and provides solutions for various construction and environmental projects. It constructs advanced buildings, plants, and transportation networks, and delivers management services for each project. Planning and cost management solutions help customers meet economic objectives and address potential operational or regulatory liabilities. Arcadis operates four business lines: infrastructure, water, environment, and buildings. It designs drinking water supply systems and treatment technologies for waste water. The segments of the company are Places, Mobility, Resilience and Intelligence. The company delivers services all over the world, with no single customer or country constituting a majority of total sales.
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