AlarmForce Industries has a quick ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for AlarmForce Industries's Quick Ratio or its related term are showing as below:
ARFCF's Quick Ratio is not ranked *
in the Business Services industry.
Industry Median: 1.545 * Ranked among companies with meaningful Quick Ratio only.
AlarmForce Industries Quick Ratio Historical Data
The historical data trend for AlarmForce Industries'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 AlarmForce Industries's Quick Ratio
For the Security & Protection Services subindustry, AlarmForce Industries'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.
AlarmForce Industries's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, AlarmForce Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where AlarmForce Industries's Quick Ratio falls into.
AlarmForce Industries 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.
AlarmForce Industries's Quick Ratio for the fiscal year that ended in Oct. 2016 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.
AlarmForce Industries (OTCPK:ARFCF) 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.
AlarmForce Industries Quick Ratio Related Terms
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AlarmForce Industries (AlarmForce Industries) Business Description
AlarmForce Industries Inc is a Canada based company provides security based solutions. It primarily offers security alarm monitoring, personal emergency response monitoring, video surveillance and related services. The company provides home security systems, which includes home security; home automation; smoke, flood, and carbon monoxide detection, and Bundles. The company's business security systems include business security and video, business automation and customized solutions. The industry serves both residential and commercial market. Geographically the firm offers services to subscribers throughout Canada and selected centres across the United States of America. AlarmForce derives most of the revenue from the sale of security-based products.
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