ZACKSยท2025-08-18 13:26Core Insights - The article emphasizes the importance of liquidity in assessing a company's ability to meet debt obligations and suggests that companies with adequate liquidity can drive business growth and deliver higher returns [1][2][3] Group 1: Liquidity Measures - Current Ratio: A measure of current assets relative to current liabilities, with an ideal range of 1-3 indicating a healthy balance [4] - Quick Ratio: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [5] - Cash Ratio: The most conservative measure, focusing on cash and cash equivalents relative to current liabilities, with a ratio greater than 1 being desirable but potentially indicating inefficiency [6] Group 2: Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets, with a higher ratio than the industry average indicating efficiency [7] - Growth Score: A proprietary measure added to ensure that liquid and efficient stocks have solid growth potential, with a score of A or B indicating better performance [8] Group 3: Stock Recommendations - The New York Times Company (NYT): Reported second-quarter 2025 adjusted earnings per share of 58 cents, exceeding estimates, with total revenues of $685.9 million, a 9.7% year-over-year increase [11][12] - Dillard's, Inc. (DDS): Reported second-quarter 2025 net sales of $1.5 billion, up 1.6% year over year, with adjusted earnings per share of $4.66, surpassing estimates by 23% [14][15] - Newmont Corporation (NEM): Achieved second-quarter revenues of approximately $5.32 billion, a 20.8% increase from the prior year, driven by higher gold prices [17][18] - Frontdoor, Inc. (FTDR): Reported revenues of $617 million for the last quarter, a 14% year-over-year increase, with a gross margin expansion of 130 basis points to 58% [20][21]