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. Nova Lifestyle's quick ratio for the quarter that ended in Dec. 2023 was 0.42.
Nova Lifestyle has a quick ratio of 0.42. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Nova Lifestyle's Quick Ratio or its related term are showing as below:
NVFY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.42 Med: 5.48 Max: 26.47
Current: 0.42
During the past 13 years, Nova Lifestyle's highest Quick Ratio was 26.47. The lowest was 0.42. And the median was 5.48.
NVFY's Quick Ratio is ranked worse than 92.07% of 429
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.23
vs NVFY: 0.42
Nova Lifestyle Quick Ratio Historical Data
The historical data trend for Nova Lifestyle'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 Nova Lifestyle's Quick Ratio
For the Furnishings, Fixtures & Appliances subindustry, Nova Lifestyle'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.
Nova Lifestyle's Quick Ratio Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Nova Lifestyle's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nova Lifestyle's Quick Ratio falls into.
Nova Lifestyle 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.
Nova Lifestyle'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.
Nova Lifestyle (NAS:NVFY) 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.
Nova Lifestyle Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nova Lifestyle's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nova Lifestyle (Nova Lifestyle) Business Description
Nova Lifestyle Inc is a designer and lifestyle furniture company. It distributes and retails contemporary styled residential and commercial furniture. The firms marketing and sales platform offers retail as well as online selection and purchase fulfillment internationally. The company also sells managed a variety of bedding foundation components. Its collection of lifestyle furniture brands includes Diamond Sofa. The firm's products are made in the United States and Asia. Its customers mainly comprise distributors and retailers having specific geographic coverages that deploy middle to high-end private label home furnishings. The Company operates in one business and industry segment: the design and sale of furniture.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NVFY has been successfully added to your 