Merafe Resources (JSE:MRF) Quick Ratio : 3.32 (As of Dec. 2023)

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What is Merafe Resources 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. Merafe Resources's quick ratio for the quarter that ended in Dec. 2023 was 3.32.

Merafe Resources has a quick ratio of 3.32. It generally indicates good short-term financial strength.

The historical rank and industry rank for Merafe Resources's Quick Ratio or its related term are showing as below:

JSE:MRF' s Quick Ratio Range Over the Past 10 Years
Min: 0.78 Med: 1.98 Max: 3.32
Current: 3.32

During the past 13 years, Merafe Resources's highest Quick Ratio was 3.32. The lowest was 0.78. And the median was 1.98.

JSE:MRF's Quick Ratio is ranked better than
63% of 2681 companies
in the Metals & Mining industry
Industry Median: 1.71 vs JSE:MRF: 3.32

Merafe Resources Quick Ratio Historical Data

The historical data trend for Merafe Resources'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.

Merafe Resources Quick Ratio Chart

Merafe Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Quick Ratio

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1.76

1.83

2.83

2.29

3.32

Merafe Resources Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio	Get a 7-Day Free Trial															2.83	2.63	2.29	3.04	3.32

Competitive Comparison of Merafe Resources's Quick Ratio

For the Other Industrial Metals & Mining subindustry, Merafe Resources'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.

Merafe Resources's Quick Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Merafe Resources's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Merafe Resources's Quick Ratio falls into.

Merafe Resources 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.

Merafe Resources's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(5181.538	-	1916.476)	/	983.918
	=	3.32

Merafe Resources'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
	=	(5181.538	-	1916.476)	/	983.918
	=	3.32

Merafe Resources (JSE:MRF) 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.

Merafe Resources Quick Ratio Related Terms

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Merafe Resources (JSE:MRF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Merafe Resources Ltd (JSE:MRF) » Definitions » Quick Ratio

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RZT:Germany

Address

35 Ballyclare Drive, Building B, 2nd floor, Ballyoaks Office Park, Bryanston, ZAF, 2191

Website

https://www.meraferesources.co.za

Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namely, Waterval mine; Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals.