The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Alliance Nickel's quick ratio for the quarter that ended in Dec. 2023 was 4.49.
Alliance Nickel has a quick ratio of 4.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for Alliance Nickel's Quick Ratio or its related term are showing as below:
ASX:AXN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.7 Med: 3.65 Max: 11.85
Current: 4.49
During the past 13 years, Alliance Nickel's highest Quick Ratio was 11.85. The lowest was 0.70. And the median was 3.65.
ASX:AXN's Quick Ratio is ranked better than 70.61% of 2681
companies
in the Metals & Mining industry
Industry Median: 1.7
vs ASX:AXN: 4.49
Alliance Nickel Quick Ratio Historical Data
The historical data trend for Alliance Nickel's Quick Ratio can be seen below:
* 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.
Competitive Comparison of Alliance Nickel's Quick Ratio
For the Other Industrial Metals & Mining subindustry, Alliance Nickel'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.
Alliance Nickel's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Alliance Nickel's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Alliance Nickel's Quick Ratio falls into.
Alliance Nickel 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.
Alliance Nickel's Quick Ratio for the fiscal year that ended in Jun. 2023 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.
Alliance Nickel (ASX:AXN) 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.
Alliance Nickel Quick Ratio Related Terms
Thank you for viewing the detailed overview of Alliance Nickel's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Alliance Nickel Ltd is an exploration and development company with nickel, cobalt and gold interests in Western Australia. Alliance's principal asset is its 100% owned NiWest Nickel Cobalt Project situated adjacent to Glencore's Murrin Murrin Operations. The company has completed a Pre-Feasibility Study which has confirmed the technical and economic viability of a heap leach and direct solvent extraction operation at undeveloped nickel/cobalt deposits in Australia.
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