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Liberty Financial Group (ASX:LFG) Quick Ratio : 0.45 (As of Dec. 2023)


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What is Liberty Financial Group Quick Ratio?

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. Liberty Financial Group's quick ratio for the quarter that ended in Dec. 2023 was 0.45.

Liberty Financial Group has a quick ratio of 0.45. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Liberty Financial Group's Quick Ratio or its related term are showing as below:

ASX:LFG' s Quick Ratio Range Over the Past 10 Years
Min: 0.45   Med: 0.71   Max: 6.91
Current: 0.46

During the past 5 years, Liberty Financial Group's highest Quick Ratio was 6.91. The lowest was 0.45. And the median was 0.71.

ASX:LFG's Quick Ratio is ranked worse than
92.52% of 401 companies
in the Credit Services industry
Industry Median: 3.51 vs ASX:LFG: 0.46

Liberty Financial Group Quick Ratio Historical Data

The historical data trend for Liberty Financial Group'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.

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Liberty Financial Group Quick Ratio Chart

Liberty Financial Group Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
Quick Ratio
1.03 6.91 0.71 0.45 0.46

Liberty Financial Group Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Quick Ratio Get a 7-Day Free Trial 0.71 0.37 0.45 0.45 0.46

Competitive Comparison of Liberty Financial Group's Quick Ratio

For the Credit Services subindustry, Liberty Financial Group'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.


Liberty Financial Group's Quick Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Liberty Financial Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Liberty Financial Group's Quick Ratio falls into.



Liberty Financial Group 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.

Liberty Financial Group's Quick Ratio for the fiscal year that ended in Jun. 2024 is calculated as

Quick Ratio (A: Jun. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1881.234-0)/4069.538
=0.46

Liberty Financial Group's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1726.386-0)/3797.676
=0.45

* 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.


Liberty Financial Group  (ASX:LFG) 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.


Liberty Financial Group Quick Ratio Related Terms

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Liberty Financial Group Business Description

Traded in Other Exchanges
N/A
Address
535 Bourke Street, Level 16, Melbourne, VIC, AUS, 3000
Liberty Financial Group Ltd is a financial services company. The company conducts activities and makes investments in the financial services industry including but not limited to specialty lending, finance and insurance brokering, receivables servicing, consumer insurance underwriting, real estate, and funds management across Australia and New Zealand. Its segments include residential finance, secured finance, financial services, and corporate. It generates maximum revenue from Residential Finance.