Retail Food Group (ASX:RFG) Quick Ratio : 0.99 (As of Dec. 2023)

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What is Retail Food Group Quick Ratio?

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. Retail Food Group's quick ratio for the quarter that ended in Dec. 2023 was 0.99.

Retail Food Group has a quick ratio of 0.99. It indicates that the company cannot currently fully pay back its current liabilities.

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

ASX:RFG' s Quick Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.98 Max: 2.13
Current: 0.99

During the past 13 years, Retail Food Group's highest Quick Ratio was 2.13. The lowest was 0.27. And the median was 0.98.

ASX:RFG's Quick Ratio is ranked better than
56.57% of 350 companies
in the Restaurants industry
Industry Median: 0.89 vs ASX:RFG: 0.99

Retail Food Group Quick Ratio Historical Data

The historical data trend for Retail Food Group'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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Retail Food Group Quick Ratio Chart

Retail Food Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Quick Ratio

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0.28

0.83

0.96

0.86

1.15

Retail Food Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio	Get a 7-Day Free Trial															0.63	0.86	0.60	1.15	0.99

Competitive Comparison of Retail Food Group's Quick Ratio

For the Restaurants subindustry, Retail Food Group'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.

Retail Food Group's Quick Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Retail Food Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Retail Food Group's Quick Ratio falls into.

Retail Food Group 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.

Retail Food Group's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Quick Ratio (A: Jun. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(62.302	-	3.717)	/	51.073
	=	1.15

Retail Food Group's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(63.624	-	5.622)	/	58.699
	=	0.99

Retail Food Group (ASX:RFG) 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.

Retail Food Group Quick Ratio Related Terms

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Retail Food Group (ASX:RFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Retail Food Group Ltd (ASX:RFG) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

RFGPF:USA

Address

35 Robina Town Centre Drive, Level 4, Robina, QLD, AUS, 4226

Website

https://www.rfg.com.au

Retail Food Group Ltd owns, operates, and franchises restaurants primarily located in Australia. Retail Food Group's brands include Donut King, Michel's Patisserie, Brumby's Bakery, Esquires Coffee Houses, Gloria Jean's Coffees, Pizza Capers Gourmet Kitchen, and Crust Gourmet Pizza. The company generates roughly half its revenue from restaurants that it directly operates. Its major source of revenue is from franchise agreements. The Group's primary revenue streams include revenue from the sales of goods, revenue from the sale of franchise agreements, revenue from the sale of distribution rights, operating lease income, and other sources. Its segment is Bakery/Café Division, QSR Division, Coffee Retail Division and Di Bella Coffee. It generates maximum revenue from Coffee Retail Division.