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. Kontron AG's quick ratio for the quarter that ended in Dec. 2023 was 1.03.
Kontron AG has a quick ratio of 1.03. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kontron AG's Quick Ratio or its related term are showing as below:
XTER:KTN'
s Quick Ratio Range Over the Past 10 Years
Min: 1.03 Med: 1.17 Max: 1.51
Current: 1.03
During the past 13 years, Kontron AG's highest Quick Ratio was 1.51. The lowest was 1.03. And the median was 1.17.
XTER:KTN's Quick Ratio is ranked worse than 71% of 2486
companies
in the Hardware industry
Industry Median: 1.48
vs XTER:KTN: 1.03
Kontron AG Quick Ratio Historical Data
The historical data trend for Kontron AG'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 Kontron AG's Quick Ratio
For the Computer Hardware subindustry, Kontron AG'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.
Kontron AG's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Kontron AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kontron AG's Quick Ratio falls into.
Kontron AG 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.
Kontron AG'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.
Kontron AG (XTER:KTN) 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.
Kontron AG Quick Ratio Related Terms
Thank you for viewing the detailed overview of Kontron AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kontron AG is an IT systems and hardware components manufacturer. It operates in three segments: IT Services, which includes consulting and sales of third-party hardware and software products as well as implementation and operation in the DACH region and Eastern Europe. The portfolio offered includes the areas of planning (consulting), implementation (integration), and outsourcing of IT services; IoT Solutions Europe segment focuses on the development of secure solutions through a combined portfolio of hardware, middleware, and services in the areas of the Internet of Things (loT) and Industry 4.0; and loT Solutions America segment covers business activities in the vertical markets of transport and aviation as well as communications in the North America region.
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