Digi International has a quick ratio of 1.28. It generally indicates good short-term financial strength.
The historical rank and industry rank for Digi International's Quick Ratio or its related term are showing as below:
FRA:DGI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.94 Med: 3.4 Max: 9.43
Current: 1.28
During the past 13 years, Digi International's highest Quick Ratio was 9.43. The lowest was 0.94. And the median was 3.40.
FRA:DGI's Quick Ratio is ranked worse than 58.6% of 2488
companies
in the Hardware industry
Industry Median: 1.47
vs FRA:DGI: 1.28
Digi International Quick Ratio Historical Data
The historical data trend for Digi International'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 Digi International's Quick Ratio
For the Communication Equipment subindustry, Digi International'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.
Digi International's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Digi International's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Digi International's Quick Ratio falls into.
Digi International 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.
Digi International's Quick Ratio for the fiscal year that ended in Sep. 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.
Digi International (FRA:DGI) 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.
Digi International Quick Ratio Related Terms
Thank you for viewing the detailed overview of Digi International's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Digi International Inc is a Minnesota corporation. The company provides business and mission-critical and Internet of Things (IoT) connectivity products and services. It has two segments: IoT Products and Services and IoT Solutions. The IoT Products and Services segment consists of distinct communications products and communication product development services. IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. The company generates majority of its revenue from the IoT Products & Services segment. Geographically, the company generates majority of its revenue from its business in the United States and also has its presence in Europe, Middle East and Africa and Rest of the world.
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