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. Restaurant Brands International's quick ratio for the quarter that ended in Dec. 2023 was 0.94.
Restaurant Brands International has a quick ratio of 0.94. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Restaurant Brands International's Quick Ratio or its related term are showing as below:
QSR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.91 Med: 1.08 Max: 1.67
Current: 0.94
During the past 12 years, Restaurant Brands International's highest Quick Ratio was 1.67. The lowest was 0.91. And the median was 1.08.
QSR's Quick Ratio is ranked better than 54.15% of 349
companies
in the Restaurants industry
Industry Median: 0.9
vs QSR: 0.94
Restaurant Brands International Quick Ratio Historical Data
The historical data trend for Restaurant Brands International'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.
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Restaurant Brands International Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Quick Ratio
1.24
1.35
0.92
0.91
0.94
Restaurant Brands International Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
0.91
0.93
1.00
1.07
0.94
Competitive Comparison
For the Restaurants subindustry, Restaurant Brands International'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.
Restaurant Brands International Quick Ratio Distribution
For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Restaurant Brands International's Quick Ratio falls into.
Restaurant Brands International 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.
Restaurant Brands International'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.
Restaurant Brands International (NYSE:QSR) 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.
Restaurant Brands International Quick Ratio Related Terms
Thank you for viewing the detailed overview of Restaurant Brands International's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Restaurant Brands International (Restaurant Brands International) Business Description
Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $39 billion in 2022 systemwide sales across a footprint that spanned nearly 30,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Hortons International, the Restaurant Brands portfolio now includes Burger King (19,000 units), Tim Hortons (5,600 units), Popeyes Louisiana Kitchen (4,100 units) and Firehouse Subs (1,250 units) as of year-end 2022.
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