July 31, 2012 (Chinavestor) Taking a close look at balance sheet of various companies always pays out. The following study compares financial strength measures of Qihoo 360 Technologies (NASDAQ:QIHU) to industry peers such as Sohu.com (NASDAQ:SOHU), NetEase.com Inc. (NASDAQ:NTES), Tencent Inc. (HKG:0700) and Sina Corp. (NASDAQ:SINA).
The comparison of quarterly data for current and quick ratios illustrates QIHU’s good liquidity and strong ability to meet its short term obligations. The current and quick ratios for Qihoo 360 Technologies (NASDAQ:QIHU) increased dramatically during Q2 2011, which is due to QIHU’s IPO in that quarter, and its current and quick ratios declined since Q2 2011, while still being highest among the competitors.
The comparison of quarterly data for debt to asset and debt to equity shows that, after Q1 2011, Qihoo 360 Technologies (NASDAQ:QIHU) has both lowest debt to asset and debt to equity ratios among these competitors. This means that it is operating at relatively low leverage and is able to increase return on asset/equity (ROA and ROE), if it wants to leverage its business by sizing up more debt in the future.