Investing “Quick” with Buycel
December 5, 2016
When we say “quick” we are not referring to time, we actually are talking about how understanding a company’s quick ratio can help you make better investing decisions. Quick ratio shows the liquidity of a company. This measures a company’s ability to meet its short-term obligations with its most liquid assets. It allows investors to understand their current financial standing and ability for future growth. The higher the quick ratio the more money has to invest in future growth.
How to Calculate Quick Ratios
In order to find the quick ratio, you will need Current Assets and Current Liabilities. Within a Buycel spreadsheet, you will need to use the STOCK_LATEST function. To do this, first you will need to select the cell and begin by typing the equals sign (=). This will bring up the functions menu, where you can select STOCK_LATEST, or you can type it in directly.
Next you will need to follow the STOCK_LATEST syntax, which is (Ticker, Key). The ticker is the stock symbol for the company you are looking for. The key refers to the attribute or type of data you are looking to pull in from the SEC filings. Luckily, with Buycel you do not have to memorize all of the keys/attributes, as you type it will bring up suggestions for what you might be looking for. In this case we are interested in “Current Assets” and “Current Liabilities.”
Now that we found the current assets and liabilities, we will need to use our own formula in the spreadsheet. In order to determine the quick ratio, we will need to divide the current assets by the current liabilities.
As you can see, both Ford and Tesla are in a strong position for future growth. Their assets outweigh their debt plus they have room for investing into their future growth.
Get started with Buycel today and you’ll be able to do this and much more detailed analysis.
Legal Notice – Buycel does not make recommendations or offer investment advice of any kind and is not responsible for the accuracy of data provided by external data sources. Please review our legal policy for further details.