Digiasia Ordinary Shares(Faas) Financials: Quick Ratio Compared To Industry Average, Plus Other Key Ratios
Liquidity Trend (Last 5 Years)
Liquidity - quick ratio
This chart shows the historical trend of quick ratio for FAAS compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Quick Ratio
Definition: The quick ratio is like an emergency response measure: can the company pay off short-term debts without selling any inventory? It only counts cash, short-term investments, and receivables — assets that can quickly be turned into cash. A healthy quick ratio shows strong liquidity. A very low quick ratio means the company depends on selling inventory to meet short-term obligations — which can be risky if sales unexpectedly slow down.
Interpretation:
• In '2021', FAAS's quick ratio was 0.76, providing a stringent test of short-term liquidity. Industry average for Computer Software: Prepackaged Software in '2021' stood at 2.42.
• In '2022', FAAS's quick ratio was 0.41, providing a stringent test of short-term liquidity. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2022' stood at 2.17. Industry average declined by 0.25 from previous year.
Overall, FAAS's quick ratio has been volatile but showed a downward trend over the past 2 years.
Formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Good Range: Normally between 0.8 and 1.5.