ReadyTech Holdings (ASX:RDY) Quick Ratio : 0.59 (As of Dec. 2023)

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What is ReadyTech Holdings Quick Ratio?

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. ReadyTech Holdings's quick ratio for the quarter that ended in Dec. 2023 was 0.59.

ReadyTech Holdings has a quick ratio of 0.59. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for ReadyTech Holdings's Quick Ratio or its related term are showing as below:

ASX:RDY' s Quick Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.59 Max: 1.61
Current: 0.59

During the past 5 years, ReadyTech Holdings's highest Quick Ratio was 1.61. The lowest was 0.47. And the median was 0.59.

ASX:RDY's Quick Ratio is ranked worse than
88.74% of 2833 companies
in the Software industry
Industry Median: 1.64 vs ASX:RDY: 0.59

ReadyTech Holdings Quick Ratio Historical Data

The historical data trend for ReadyTech Holdings'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.

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ReadyTech Holdings Quick Ratio Chart

ReadyTech Holdings Annual Data

Trend

Jun19

Jun20

Jun21

Jun22

Jun23

Quick Ratio

0.64

0.60

0.48

0.47

0.76

ReadyTech Holdings Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio	Get a 7-Day Free Trial						0.47	0.47	0.55	0.76	0.59

Competitive Comparison of ReadyTech Holdings's Quick Ratio

For the Software - Application subindustry, ReadyTech Holdings'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.

ReadyTech Holdings's Quick Ratio Distribution in the Software Industry

For the Software industry and Technology sector, ReadyTech Holdings's Quick Ratio distribution charts can be found below:

* The bar in red indicates where ReadyTech Holdings's Quick Ratio falls into.

ReadyTech Holdings 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.

ReadyTech Holdings's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Quick Ratio (A: Jun. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(37.734	-	0)	/	49.95
	=	0.76

ReadyTech Holdings's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(31.52	-	0)	/	53.664
	=	0.59

ReadyTech Holdings (ASX:RDY) 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.

ReadyTech Holdings Quick Ratio Related Terms

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ReadyTech Holdings (ASX:RDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ReadyTech Holdings Ltd (ASX:RDY) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

77 King Street, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.readytech.com.au

ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Education segment. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments and justice departments.