GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » SAR Auto Products Ltd (BOM:538992) » Definitions » Quick Ratio

SAR Auto Products (BOM:538992) Quick Ratio : 1.16 (As of Mar. 2024)


View and export this data going back to 2015. Start your Free Trial

What is SAR Auto Products 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. SAR Auto Products's quick ratio for the quarter that ended in Mar. 2024 was 1.16.

SAR Auto Products has a quick ratio of 1.16. It generally indicates good short-term financial strength.

The historical rank and industry rank for SAR Auto Products's Quick Ratio or its related term are showing as below:

BOM:538992' s Quick Ratio Range Over the Past 10 Years
Min: 1.36   Med: 3.94   Max: 19.3
Current: 1.36

During the past 11 years, SAR Auto Products's highest Quick Ratio was 19.30. The lowest was 1.36. And the median was 3.94.

BOM:538992's Quick Ratio is ranked better than
64.98% of 1308 companies
in the Vehicles & Parts industry
Industry Median: 1.04 vs BOM:538992: 1.36

SAR Auto Products Quick Ratio Historical Data

The historical data trend for SAR Auto Products'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.

* Premium members only.

SAR Auto Products Quick Ratio Chart

SAR Auto Products Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.57 3.77 2.35 1.42 1.16

SAR Auto Products Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.42 - 1.36 - 1.16

Competitive Comparison of SAR Auto Products's Quick Ratio

For the Auto Parts subindustry, SAR Auto Products'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.


SAR Auto Products's Quick Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, SAR Auto Products's Quick Ratio distribution charts can be found below:

* The bar in red indicates where SAR Auto Products's Quick Ratio falls into.



SAR Auto Products 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.

SAR Auto Products's Quick Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Quick Ratio (A: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(218.232-20.292)/170.164
=1.16

SAR Auto Products's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(218.232-20.292)/170.164
=1.16

* 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.


SAR Auto Products  (BOM:538992) 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.


SAR Auto Products Quick Ratio Related Terms

Thank you for viewing the detailed overview of SAR Auto Products's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


SAR Auto Products (BOM:538992) Business Description

Traded in Other Exchanges
N/A
Address
50-E, Bhaktinagar Industrial Estate, Rajkot, GJ, IND, 360002
SAR Auto Products Ltd is carrying on the business of manufacturing auto components. The company manufactures auto components comprising of automobile gears like a spur, helical, straight bevel, sprockets along with transmission spline shaft, couplings and power takeoff clutches which are used for transmission, engine, and differential gearboxes. It operates in the manufacturing segment. The company caters to both domestic and international markets.

SAR Auto Products (BOM:538992) Headlines

No Headlines