Actual Experience (LSE:ACT) Quick Ratio : 5.45 (As of Mar. 2023)

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What is Actual Experience 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. Actual Experience's quick ratio for the quarter that ended in Mar. 2023 was 5.45.

Actual Experience has a quick ratio of 5.45. It generally indicates good short-term financial strength.

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

LSE:ACT' s Quick Ratio Range Over the Past 10 Years
Min: 3.51 Med: 11.91 Max: 36.38
Current: 5.45

During the past 12 years, Actual Experience's highest Quick Ratio was 36.38. The lowest was 3.51. And the median was 11.91.

LSE:ACT's Quick Ratio is not ranked
in the Software industry.
Industry Median: 1.64 vs LSE:ACT: 5.45

Actual Experience Quick Ratio Historical Data

The historical data trend for Actual Experience'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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Actual Experience Quick Ratio Chart

Actual Experience Annual Data

Trend

Jul12

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Quick Ratio

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13.78

11.11

5.92

8.74

3.51

Actual Experience Semi-Annual Data
	Mar13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23
Quick Ratio	Get a 7-Day Free Trial															13.91	8.74	7.10	3.51	5.45

Competitive Comparison of Actual Experience's Quick Ratio

For the Information Technology Services subindustry, Actual Experience'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.

Actual Experience's Quick Ratio Distribution in the Software Industry

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

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

Actual Experience 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.

Actual Experience's Quick Ratio for the fiscal year that ended in Sep. 2022 is calculated as

Quick Ratio (A: Sep. 2022 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(3.373	-	0)	/	0.962
	=	3.51

Actual Experience's Quick Ratio for the quarter that ended in Mar. 2023 is calculated as

Quick Ratio (Q: Mar. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(3.54	-	0)	/	0.65
	=	5.45

Actual Experience (LSE:ACT) 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.

Actual Experience Quick Ratio Related Terms

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Actual Experience (LSE:ACT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Actual Experience PLC (LSE:ACT) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Quay House, The Ambury, Bath, Somerset, GBR, BA1 1UA

Website

https://www.actual-experience.com

Actual Experience PLC operates in the United Kingdom technology sector. Its analytics services aid companies that provide digital services. The company's main product is a cloud analytics platform that transforms the measurements of the digital products and services into a real-time digital voice of the customer quality scores. It fragments its services based on its end-user into the Actual Work, Actual Home, and Actual Work Web trademark products. Actual Work analyses infrastructure and application elements in each delivery path as a supplier in a digital supply chain. The company operates in the United Kingdom, and the United States of America of which it generates maximum revenue from the United States of America.