* 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 Cavitation Technologies's Quick Ratio
For the Specialty Industrial Machinery subindustry, Cavitation Technologies'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.
Cavitation Technologies's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cavitation Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cavitation Technologies's Quick Ratio falls into.
Cavitation Technologies 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.
Cavitation Technologies's Quick Ratio for the fiscal year that ended in Jun. 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.
Cavitation Technologies (OTCPK:CVAT) 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.
Cavitation Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cavitation Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cavitation Technologies (Cavitation Technologies) Business Description
Cavitation Technologies Inc develops, patents, and commercializes the proprietary technology for large-scale liquid processing applications. The firm has commercialized its proprietary technology for refining vegetable oils by providing domestic and foreign refining facilities with a firm's Nano Neutralization technology and cavitation systems comprising the Nano Reactor. Its technologies can be applied to several other fluid-processing industries that will benefit from increased yields, lowered processing costs, and improved quality. It has filed patent applications related to edible oil refining, renewable fuel production, both alcoholic and non-alcoholic beverage processing and enhancement, and petroleum upgrading. Its component comprises of Nano Reactor and LPN.
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