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. Pure Cycle's quick ratio for the quarter that ended in Feb. 2024 was 3.56.
Pure Cycle has a quick ratio of 3.56. It generally indicates good short-term financial strength.
The historical rank and industry rank for Pure Cycle's Quick Ratio or its related term are showing as below:
PCYO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.82 Med: 4.15 Max: 109.59
Current: 3.56
During the past 13 years, Pure Cycle's highest Quick Ratio was 109.59. The lowest was 0.82. And the median was 4.15.
PCYO's Quick Ratio is ranked better than 95.16% of 517
companies
in the Utilities - Regulated industry
Industry Median: 0.97
vs PCYO: 3.56
Pure Cycle Quick Ratio Historical Data
The historical data trend for Pure Cycle'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 Pure Cycle's Quick Ratio
For the Utilities - Regulated Water subindustry, Pure Cycle'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.
Pure Cycle's Quick Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Pure Cycle's Quick Ratio falls into.
Pure Cycle 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.
Pure Cycle's Quick Ratio for the fiscal year that ended in Aug. 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.
Pure Cycle (NAS:PCYO) 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.
Pure Cycle Quick Ratio Related Terms
Thank you for viewing the detailed overview of Pure Cycle's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Pure Cycle Corp is a diversified land and water resource development company. It designs, constructs, manages, operates, and maintains water and wastewater systems. The firm operates in two business segments namely Water and wastewater resource development and Land development. It generates maximum revenue from the Land development segment. The company's services include water production, storage, treatment, bulk transmission to retail distribution systems, wastewater collection and treatment, irrigation water treatment and transmission, construction management, billing, and collection. The land resource development segment includes all the activities necessary to develop and sell finished lots.
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