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. Vasta Platform's quick ratio for the quarter that ended in Mar. 2024 was 0.84.
Vasta Platform has a quick ratio of 0.84. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Vasta Platform's Quick Ratio or its related term are showing as below:
VSTA'
s Quick Ratio Range Over the Past 10 Years
Min: 0.49 Med: 1.24 Max: 1.6
Current: 0.84
During the past 6 years, Vasta Platform's highest Quick Ratio was 1.60. The lowest was 0.49. And the median was 1.24.
VSTA's Quick Ratio is ranked worse than 72.01% of 268
companies
in the Education industry
Industry Median: 1.27
vs VSTA: 0.84
Vasta Platform Quick Ratio Historical Data
The historical data trend for Vasta Platform'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 Vasta Platform's Quick Ratio
For the Education & Training Services subindustry, Vasta Platform'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.
Vasta Platform's Quick Ratio Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Vasta Platform's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vasta Platform's Quick Ratio falls into.
Vasta Platform 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.
Vasta Platform's Quick Ratio for the fiscal year that ended in Dec. 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.
Vasta Platform (NAS:VSTA) 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.
Vasta Platform Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vasta Platform's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vasta Platform (Vasta Platform) Business Description
Vasta Platform Ltd operates as an education company in Brazil, engaged in providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment. Its business segments are Content and EdTech Platform, and Digital Platform. The Content and EdTech platform derives its results from educational content solutions through digital and printed content, including textbooks, learning systems and other complementary educational services. The Digital Platform enables private schools to aggregate multiple learning strategies and helps them to focus on education, through the Business' physical and digital e-commerce platform and other digital services.
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