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RingCentral Quick Ratio

: 1.46 (As of Sep. 2021)
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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. RingCentral's quick ratio for the quarter that ended in Sep. 2021 was 1.46.

RingCentral has a quick ratio of 1.46. It generally indicates good short-term financial strength.

The historical rank and industry rank for RingCentral's Quick Ratio or its related term are showing as below:

NYSE:RNG' s Quick Ratio Range Over the Past 10 Years
Min: 0.54   Med: 2.05   Max: 4.71
Current: 1.46

0.54
4.71

During the past 11 years, RingCentral's highest Quick Ratio was 4.71. The lowest was 0.54. And the median was 2.05.

NYSE:RNG's Quick Ratio is ranked lower than
64% of the 2589 Companies
in the Software industry.

( Industry Median: 1.93 vs. NYSE:RNG: 1.46 )

RingCentral Quick Ratio Historical Data

The historical data trend for RingCentral'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.

* Premium members only.

RingCentral Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.77 2.11 3.55 1.91 2.11

RingCentral Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.69 2.11 1.67 1.45 1.46

Competitive Comparison

For the Software - Application subindustry, RingCentral'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.

   

RingCentral Quick Ratio Distribution

For the Software industry and Technology sector, RingCentral's Quick Ratio distribution charts can be found below:

* The bar in red indicates where RingCentral's Quick Ratio falls into.



RingCentral 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.

RingCentral's Quick Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(926.129-0.551)/438.068
=2.11

RingCentral's Quick Ratio for the quarter that ended in Sep. 2021 is calculated as

Quick Ratio (Q: Sep. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(693.597-0.662)/475.61
=1.46

* 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.


RingCentral  (NYSE:RNG) 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.


RingCentral Quick Ratio Related Terms

Thank you for viewing the detailed overview of RingCentral's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


RingCentral Business Description

RingCentral logo
Industry
Technology » Software NAICS : 541519 SIC : 7379
Traded in Other Exchanges
Address
20 Davis Drive, Belmont, CA, USA, 94002
RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral's software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications. The software lets businesses communicate and collaborate using voice, video, text, Internet messaging, and conference calls on a single platform. Ninety percent of RingCentral's revenue comes from its RingCentral Office application, which is available in four tiers based on integration needs and the number of employees. The company was founded in 1999 and its headquarters are in Belmont, California.
Executives
Agarwal Vaibhav officer: Chief Accounting Officer 20 DAVIS DRIVE BELMONT CA 94002
Shah Praful officer: Chief Strategy Officer C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Marlow John H officer: SVP, CAO & General Counsel C/O RINGCENTRAL, INC 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Iii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Ii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund I, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca, Llc other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Sandra other: Wife of Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Vladimir director, officer: CEO & Chairman C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Williams R Neil director C/O INTUIT INC. 2700 COAST AVENUE MOUNTAIN VIEW CA 94043
Dhruv Mitesh officer: Chief Financial Officer 34601 CASCADES CIRCLE UNION CITY CA 94587
Sullivan Godfrey director SPLUNK INC. 250 BRANNAN STREET SAN FRANCISCO CA 94107
Theis Robert I director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: THEIS ROBERT I a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Eswaran Anand officer: President & COO 20 DAVIS DRIVE BELMONT CA 94002
Goldman Kenneth A director C/O YAHOO! INC. 701 FIRST AVENUE SUNNYVALE CA 94089

RingCentral Headlines

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