APLD (Applied Digital) Quick Ratio : 0.70 (As of Feb. 2025)

Applied Digital Quick Ratio Chart

Applied Digital Annual Data
	Trend	May04	May05	May06	May07	May08	May20	May21	May22	May23	May24
Quick Ratio		Get a 7-Day Free Trial					-	4.70	1.39	0.40	0.08

Applied Digital Quarterly Data
	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25
Quick Ratio	Get a 7-Day Free Trial															0.30	0.08	0.22	0.77	0.70

Competitive Comparison of Applied Digital's Quick Ratio

For the Information Technology Services subindustry, Applied Digital'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.

Applied Digital's Quick Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Applied Digital's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Applied Digital's Quick Ratio falls into.

Applied Digital 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.

Applied Digital's Quick Ratio for the fiscal year that ended in May. 2024 is calculated as

Applied Digital's Quick Ratio for the quarter that ended in Feb. 2025 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.

Applied Digital  (NAS:APLD) 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.

Applied Digital Quick Ratio Related Terms

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Applied Digital Business Description