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. Vonage Holdings's quick ratio for the quarter that ended in Mar. 2022 was 0.75.
Vonage Holdings has a quick ratio of 0.75. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Vonage Holdings's Quick Ratio or its related term are showing as below:
VG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.43 Med: 0.72 Max: 3.75
Current: 0.75
During the past 13 years, Vonage Holdings's highest Quick Ratio was 3.75. The lowest was 0.43. And the median was 0.72.
VG's Quick Ratio is not ranked
in the Telecommunication Services industry.
Industry Median: 0.96
vs VG: 0.75
Vonage Holdings Quick Ratio Historical Data
The historical data trend for Vonage Holdings'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 Vonage Holdings's Quick Ratio
For the Telecom Services subindustry, Vonage Holdings'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.
Vonage Holdings's Quick Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vonage Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vonage Holdings's Quick Ratio falls into.
Vonage Holdings 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.
Vonage Holdings's Quick Ratio for the fiscal year that ended in Dec. 2021 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.
Vonage Holdings (NAS:VG) 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.
Vonage Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vonage Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vonage Holdings (Vonage Holdings) Business Description
Vonage Holdings Corp is a North American technology company that provides cloud communication services to businesses and consumers. For businesses, the company provides unified communications (as a service), which consists of integrated voice, text, video, data, and mobile applications over Voice over Internet Protocol network. Its reportable operating segments include Vonage Communications Platform and Consumer. For consumer service customers, there is a home telephone replacement service. This can include services such as voicemail, call waiting, and call forwarding. This service is delivered over the Internet. The company generates most of its revenue within the United States.
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