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. Kumba Iron Ore's quick ratio for the quarter that ended in Dec. 2023 was 1.90.
Kumba Iron Ore has a quick ratio of 1.90. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kumba Iron Ore's Quick Ratio or its related term are showing as below:
KIROY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.63 Med: 2.45 Max: 4.03
Current: 1.9
During the past 13 years, Kumba Iron Ore's highest Quick Ratio was 4.03. The lowest was 0.63. And the median was 2.45.
KIROY's Quick Ratio is ranked better than 76.27% of 632
companies
in the Steel industry
Industry Median: 1.04
vs KIROY: 1.90
Kumba Iron Ore Quick Ratio Historical Data
The historical data trend for Kumba Iron Ore'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 Kumba Iron Ore's Quick Ratio
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore's Quick Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Quick Ratio falls into.
Kumba Iron Ore 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.
Kumba Iron Ore's Quick Ratio for the fiscal year that ended in Dec. 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.
Kumba Iron Ore (OTCPK:KIROY) 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.
Kumba Iron Ore Quick Ratio Related Terms
Thank you for viewing the detailed overview of Kumba Iron Ore's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kumba Iron Ore (Kumba Iron Ore) Business Description
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.
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