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. IHS Markit's quick ratio for the quarter that ended in Nov. 2021 was 0.68.
IHS Markit has a quick ratio of 0.68. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for IHS Markit's Quick Ratio or its related term are showing as below:
INFO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.47 Med: 0.75 Max: 1.22
Current: 0.68
During the past 13 years, IHS Markit's highest Quick Ratio was 1.22. The lowest was 0.47. And the median was 0.75.
INFO's Quick Ratio is not ranked
in the Business Services industry.
Industry Median: 1.54
vs INFO: 0.68
IHS Markit Quick Ratio Historical Data
The historical data trend for IHS Markit'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 IHS Markit's Quick Ratio
For the Consulting Services subindustry, IHS Markit'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.
IHS Markit's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, IHS Markit's Quick Ratio distribution charts can be found below:
* The bar in red indicates where IHS Markit's Quick Ratio falls into.
IHS Markit 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.
IHS Markit's Quick Ratio for the fiscal year that ended in Nov. 2021 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.
IHS Markit (NYSE:INFO) 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.
IHS Markit Quick Ratio Related Terms
Thank you for viewing the detailed overview of IHS Markit's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.
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