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. Rentrak's quick ratio for the quarter that ended in Sep. 2015 was 4.20.
Rentrak has a quick ratio of 4.20. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rentrak's Quick Ratio or its related term are showing as below:
RENT's Quick Ratio is not ranked *
in the Business Services industry.
Industry Median: 1.545 * Ranked among companies with meaningful Quick Ratio only.
Rentrak Quick Ratio Historical Data
The historical data trend for Rentrak'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.
For the Specialty Business Services subindustry, Rentrak'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.
Rentrak's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Rentrak's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rentrak's Quick Ratio falls into.
Rentrak 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.
Rentrak's Quick Ratio for the fiscal year that ended in Mar. 2015 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.
Rentrak (NAS:RENT) 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.
Rentrak Quick Ratio Related Terms
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Rentrak Corp is an Oregon corporation and was incorporated in 1977. It is a media measurement and information company serving the entertainment, television, video and advertising industries. The Company's Software as a Service technology merges census-based television viewership information from over 100 million TVs and devices with consumer behavior and purchase information across multiple platforms, devices and distribution channels. It also measures box office results from more than 125,000 movie screens in 47 countries. The Company processes and aggregates billions of data transactions from multiple screens wherever entertainment content is viewed, whether at the box office, on a television screen, over the internet, on a smart phone or other portable device. It measures live TV, recorded TV, Video-On-Demand and whether the content is free, purchased, rented, recorded, downloaded or streamed from multiple channels. These content databases provide stable and granular viewership information across every screen and are anonymously matched with third-party consumer segmentation and purchase databases using privacy compliant methodologies. By linking multiscreen viewership information with information about the products viewers consume and prefer, the Company provides its clients, such as content producers, distributors, advertisers and advertising agencies, with the knowledge necessary to effectively manage their businesses, program and market their networks and precisely target and sell their advertising inventory. Additionally, certain clients of the Company use the databases to populate programmatic buying systems. These systems automate the buying process and introduce efficiencies for both advertising agencies and their clients. The Company's media measurement services are distributed through patent pending software systems and business processes into two areas within the entertainment industry: - Movies Everywhere and TV Everywhere. The Company's Entertainment Essentials services are: TV Everywhere including TV Essentials and StationView Essentials; OnDemand Everywhere includes OnDemand Essentials, Over the Top measurement products and related products; Movies Everywhere includes domestic and international Box Office Essentials, PostTrak and PreAct; and Other Services include Studio Direct Revenue Sharing and other products relating to content in the home video rental industry. The Company's primary competitors are Nielsen, Kantar and TiVo. It owns two patents directed to techniques for extracting revenue information from point-of-sale terminals, as well as nine patents for linear data collection, projections and analysis. Among the linear TV patents are two for our sophisticated TV-off methodology, which accurately accounts for cases when the TV is turned off but the set-top box.
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