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. Rakuten Group's quick ratio for the quarter that ended in Dec. 2023 was 27.58.
Rakuten Group has a quick ratio of 27.58. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rakuten Group's Quick Ratio or its related term are showing as below:
TSE:4755'
s Quick Ratio Range Over the Past 10 Years
Min: 9.33 Med: 13.25 Max: 27.58
Current: 27.58
During the past 13 years, Rakuten Group's highest Quick Ratio was 27.58. The lowest was 9.33. And the median was 13.25.
TSE:4755's Quick Ratio is ranked better than 99.64% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.88
vs TSE:4755: 27.58
Rakuten Group Quick Ratio Historical Data
The historical data trend for Rakuten 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.
Competitive Comparison of Rakuten Group's Quick Ratio
For the Internet Retail subindustry, Rakuten 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.
Rakuten Group's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rakuten Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rakuten Group's Quick Ratio falls into.
Rakuten 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.
Rakuten Group'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.
Rakuten Group (TSE:4755) 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.
Rakuten Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Rakuten Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rakuten is a leading e-commerce and fintech service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Securities, and decided to become the fourth mobile network operator in Japan, started its full service in April 2020. Mergers and acquisitions in internet and e-finance businesses have driven growth. The loyalty programme, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 80% of its revenue is generated from the Japanese market.
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