Bharat Electronics has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Bharat Electronics's Quick Ratio or its related term are showing as below:
BOM:500049'
s Quick Ratio Range Over the Past 10 Years
Min: 0.98 Med: 1.11 Max: 1.55
Current: 1.18
During the past 13 years, Bharat Electronics's highest Quick Ratio was 1.55. The lowest was 0.98. And the median was 1.11.
BOM:500049's Quick Ratio is ranked better than 52.23% of 314
companies
in the Aerospace & Defense industry
Industry Median: 1.115
vs BOM:500049: 1.18
Bharat Electronics Quick Ratio Historical Data
The historical data trend for Bharat Electronics'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 Bharat Electronics's Quick Ratio
For the Aerospace & Defense subindustry, Bharat Electronics'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.
Bharat Electronics's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Bharat Electronics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Bharat Electronics's Quick Ratio falls into.
Bharat Electronics 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.
Bharat Electronics's Quick Ratio for the fiscal year that ended in Mar. 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.
Bharat Electronics (BOM:500049) 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.
Bharat Electronics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Bharat Electronics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bharat Electronics (BOM:500049) Business Description
Bharat Electronics Ltd is an aerospace and defense company owned by the Indian government. It manufactures a wide range of specialized electronics for defense and civilian use. Its investments are made in research and development to meet the ever-changing needs of customers and to test products in its pipeline. With approximately three fourths of its revenue derived from the defense sector, relationships with government officials and military camps are critical. The company created a marketing division to take advantage of export opportunities. It ships products to countries with favorable relationships to India and looks to identify long-term supply chain relationships with global players.
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