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. Abans Holdings's quick ratio for the quarter that ended in Mar. 2024 was 1.57.
Abans Holdings has a quick ratio of 1.57. It generally indicates good short-term financial strength.
The historical rank and industry rank for Abans Holdings's Quick Ratio or its related term are showing as below:
NSE:AHL'
s Quick Ratio Range Over the Past 10 Years
Min: 1.57 Med: 2.39 Max: 3.4
Current: 1.57
During the past 5 years, Abans Holdings's highest Quick Ratio was 3.40. The lowest was 1.57. And the median was 2.39.
NSE:AHL's Quick Ratio is ranked worse than 61.93% of 662
companies
in the Capital Markets industry
Industry Median: 2.055
vs NSE:AHL: 1.57
Abans Holdings Quick Ratio Historical Data
The historical data trend for Abans Holdings'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 Abans Holdings's Quick Ratio
For the Capital Markets subindustry, Abans Holdings'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.
Abans Holdings's Quick Ratio Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Abans Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Abans Holdings's Quick Ratio falls into.
Abans Holdings 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.
Abans Holdings's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Abans Holdings (NSE:AHL) 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.
Abans Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Abans Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Abans Holdings Ltd is engaged in providing financial services. The principal activities of the Company consist of general trading of agri commodities, precious metals, trading In debentures, securities, and derivative contracts on recognized stock exchanges. The company is also engaged in advisory services like Investment Banking, Corporate Finance, Project Finance, Trade Finance, and providing Business & Retail Loans, unsecured as well as secured against collateral security of immovable property, agricultural stocks, liquid assets like shares, other financial assets, etc. The operating segments are; Agency business, Internal treasury operations, Lending activities, and Others. The majority of its revenue is derived from the Internal treasury operations segment.
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