Rave Restaurant Group (Rave Restaurant Group) Quick Ratio : 4.19 (As of Dec. 2023)

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What is Rave Restaurant Group 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. Rave Restaurant Group's quick ratio for the quarter that ended in Dec. 2023 was 4.19.

Rave Restaurant Group has a quick ratio of 4.19. It generally indicates good short-term financial strength.

The historical rank and industry rank for Rave Restaurant Group's Quick Ratio or its related term are showing as below:

RAVE' s Quick Ratio Range Over the Past 10 Years
Min: 0.65 Med: 2.41 Max: 4.19
Current: 4.19

During the past 13 years, Rave Restaurant Group's highest Quick Ratio was 4.19. The lowest was 0.65. And the median was 2.41.

RAVE's Quick Ratio is ranked better than
97.99% of 349 companies
in the Restaurants industry
Industry Median: 0.9 vs RAVE: 4.19

Rave Restaurant Group Quick Ratio Historical Data

The historical data trend for Rave Restaurant Group'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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Rave Restaurant Group Quick Ratio Chart

Rave Restaurant Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Quick Ratio

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1.97

1.96

2.29

3.48

3.11

Rave Restaurant Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Quick Ratio	Get a 7-Day Free Trial															2.70	2.83	3.11	3.13	4.19

Competitive Comparison of Rave Restaurant Group's Quick Ratio

For the Restaurants subindustry, Rave Restaurant Group'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.

Rave Restaurant Group's Quick Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Rave Restaurant Group's Quick Ratio falls into.

Rave Restaurant Group 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.

Rave Restaurant Group'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
	=	(6.834	-	0)	/	2.198
	=	3.11

Rave Restaurant Group'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
	=	(7.106	-	0)	/	1.697
	=	4.19

Rave Restaurant Group (NAS:RAVE) 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.

Rave Restaurant Group Quick Ratio Related Terms

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Rave Restaurant Group (Rave Restaurant Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Rave Restaurant Group Inc (NAS:RAVE) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

3551 Plano Parkway, The Colony, TX, USA, 75056

Website

https://www.raverg.com

Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, and express restaurants. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The company-owned restaurant segment includes sales and operating results for all company-owned restaurants. The Pizza Inn Franchising segment accounts for the company's revenue. Geographically, it generates the majority of the revenue from the United States.

Executives

Hallmark Insurance Co	other: See Note 1	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Hallmark Specialty Insurance Co	other: See Note 1	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
American Hallmark Insurance Co Of Texas	other: See Explanation	777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Brandon Solano	officer: Chief Executive Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Mark E Schwarz	director, 10 percent owner	5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Clinton Dayne Fendley	officer: Vice President - Finance	3551 PLANO PARKWAY, THE COLONY TX 75056
Burns Michael F Jr	officer: Chief Operating Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Andrea K. Allen	officer: Chief Acctg. & Admin. Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Robert W. Bafundo	officer: President	3551 PLANO PARKWAY, THE COLONY TX 75056
Scott Crane	officer: President & CEO	3551 PLANO PARKWAY, THE COLONY TX 75056
Brian Timothy Bares	director	12600 HILL COUNTRY BLVD, SUITE R-230, AUSTIN TX 78738
Timothy E Mullany	officer: Chief Financial Officer	3551 PLANO PARKWAY, THE COLONY TX 75056
Hammett William C Jr	director	CAMPBELL CENTRE, 8350 N CENTRAL EXPRESSWAY STE 1900, DALLAS TX 75206
Randall E. Gier	officer: President & CEO	3551 PLANO PARKWAY, THE COLONY TX 75056
Clinton J Coleman	director	C/O NEWCASTLE CAPITAL MANAGEMENT, L.P., 200 CRESCENT COURT, SUITE 1400, DALLAS TX 75201