Quick Ratio 0.66 times means that East Cost Yachts has its current liabilities covered 0.66 times by its current assets that can quickly be liquidated as cash (excluding inventory)
It is negative compared to the Yacht Industry average which the quick ratio is 0.75 times (higher than East Cost Yachts’s quick ratio) mean that there are big differences compared to average current ratio) means that East Cost Yachts has relatively lower liquidity positions than the average of its competitors, because in average the competitors’ current assets are dependent on inventory. If we only see the current ratio, it seems that East Cost Yachts 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.