Target Hospitality has a quick ratio of 2.57. It generally indicates good short-term financial strength.
The historical rank and industry rank for Target Hospitality's Quick Ratio or its related term are showing as below:
TH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1.08 Max: 2.57
Current: 2.57
During the past 7 years, Target Hospitality's highest Quick Ratio was 2.57. The lowest was 0.83. And the median was 1.08.
TH's Quick Ratio is ranked better than 74.26% of 1080
companies
in the Business Services industry
Industry Median: 1.54
vs TH: 2.57
Target Hospitality Quick Ratio Historical Data
The historical data trend for Target Hospitality'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 Target Hospitality's Quick Ratio
For the Specialty Business Services subindustry, Target Hospitality'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.
Target Hospitality's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Target Hospitality's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Target Hospitality's Quick Ratio falls into.
Target Hospitality 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.
Target Hospitality'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.
Target Hospitality (NAS:TH) 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.
Target Hospitality Quick Ratio Related Terms
Thank you for viewing the detailed overview of Target Hospitality's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Target Hospitality (Target Hospitality) Business Description
Target Hospitality Corp is a vertically integrated specialty rental and hospitality services company in the United States. The company provides vertically integrated specialty rental and comprehensive hospitality services including catering food services, maintenance, housekeeping, grounds-keeping, on-site security, overall workforce lodge management, and laundry service. Its operating segment includes HFS-South and HFS-Midwest; Government; TCPL Keystone and others. It generates a majority of its revenue from the Government segment which consists primarily of specialty rental and vertically integrated hospitality services revenue from customers with Government contracts located in Texas.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TH has been successfully added to your 