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. Spirit Pub Co's quick ratio for the quarter that ended in Feb. 2015 was 0.86.
Spirit Pub Co has a quick ratio of 0.86. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Spirit Pub Co's Quick Ratio or its related term are showing as below:
LSE:SPRT'
s Quick Ratio Range Over the Past 10 Years
Min: 0.51 Med: 0.71 Max: 0.88
Current: 0.86
During the past 7 years, Spirit Pub Co's highest Quick Ratio was 0.88. The lowest was 0.51. And the median was 0.71.
LSE:SPRT's Quick Ratio is not ranked
in the Travel & Leisure industry.
Industry Median: 1.1
vs LSE:SPRT: 0.86
Spirit Pub Co Quick Ratio Historical Data
The historical data trend for Spirit Pub Co'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 Spirit Pub Co's Quick Ratio
For the Leisure subindustry, Spirit Pub Co'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.
Spirit Pub Co's Quick Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Spirit Pub Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Spirit Pub Co's Quick Ratio falls into.
Spirit Pub Co 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.
Spirit Pub Co's Quick Ratio for the fiscal year that ended in Aug. 2014 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.
Spirit Pub Co (LSE:SPRT) 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.
Spirit Pub Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Spirit Pub Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Spirit Pub Co PLC was incorporated in England. The Company's trading activities are divided into two divisions; namely a Managed division and a Leased division. The Managed division involves pubs that are directly managed by the Group, and a Leased division which involves the granting of leases to licensees who run the pub as their own business, paying rent to the Group, purchasing beer and other drinks from the Group and entering into profit sharing arrangements for income from leisure machines. The Company holds 794 Managed pubs and 433 Leased pubs. The group operates solely in the United Kingdom.
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