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. Pandora Media's quick ratio for the quarter that ended in Sep. 2018 was 2.51.
Pandora Media has a quick ratio of 2.51. It generally indicates good short-term financial strength.
The historical rank and industry rank for Pandora Media's Quick Ratio or its related term are showing as below:
P's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.45 * Ranked among companies with meaningful Quick Ratio only.
Pandora Media Quick Ratio Historical Data
The historical data trend for Pandora Media'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 Pandora Media's Quick Ratio
For the Broadcasting subindustry, Pandora Media'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.
Pandora Media's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pandora Media's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Pandora Media's Quick Ratio falls into.
Pandora Media 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.
Pandora Media's Quick Ratio for the fiscal year that ended in Dec. 2017 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.
Pandora Media (NYSE:P) 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.
Pandora Media Quick Ratio Related Terms
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Pandora Media (Pandora Media) Business Description
Pandora Medic Inc is a radio broadcasting company that offers music streaming and automated music recommendation services. Pandora allows users to listen to music selections based on the user's artist or genre preference and then provide positive or negative feedback, which is utilized by the program to choose subsequent musical selections. Pandora can be accessed through a web browser or the company's application that can be downloaded to a personal computer or mobile phone. The service is available in the United States, Australia, and New Zealand. Pandora derives the majority of its revenue in the United States.
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