Quick Ratio 0,43 times means that(ECY) has its current liabilities covered 0,43times by its current assets that can quickly be liquidated as cash (excluding inventory)
–
notmore than half.It is positive compared to the Yacht Industry average which the quick ratio is 0,38times(surprisingly lower
than ECY’s
quick ratio
–
there are big differences compared to averagecurrent ratio) means that ECY has relatively higher liquidity positions than the average of itscompetitors, because in average the co
mpetitors’ current assets are dependent on inventory. If
we only see the current ratio, it seems that ECY liquidity position is worse than the average of
yacht industry, but after we analyze the quick ratio, we can see the fact that the average of yacht in
dustry’s current assets are bigger in amount because of the inventory value.