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. Parmalat SpA's quick ratio for the quarter that ended in Jun. 2018 was 1.15.
Parmalat SpA has a quick ratio of 1.15. It generally indicates good short-term financial strength.
The historical rank and industry rank for Parmalat SpA's Quick Ratio or its related term are showing as below:
PMLAY'
s Quick Ratio Range Over the Past 10 Years
Min: 1.15 Med: 2.1 Max: 3.17
Current: 1.15
During the past 13 years, Parmalat SpA's highest Quick Ratio was 3.17. The lowest was 1.15. And the median was 2.10.
PMLAY's Quick Ratio is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 1.05
vs PMLAY: 1.15
Parmalat SpA Quick Ratio Historical Data
The historical data trend for Parmalat SpA'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 Parmalat SpA's Quick Ratio
For the Packaged Foods subindustry, Parmalat SpA'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.
Parmalat SpA's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Parmalat SpA's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Parmalat SpA's Quick Ratio falls into.
Parmalat SpA 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.
Parmalat SpA's Quick Ratio for the fiscal year that ended in Dec. 2017 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.
Parmalat SpA (GREY:PMLAY) 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.
Parmalat SpA Quick Ratio Related Terms
Thank you for viewing the detailed overview of Parmalat SpA's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Parmalat SpA primarily produces, markets, and distributes milk products and fruit-based drinks under a number of brand names such as Bern, Lactis, Gold, and Solac. The company's products are categorised into milk products such as fresh milk, milk powders, condensed milk and cream; cheese and other fresh products such as yogurt, desserts, and butter; and fruit beverages such as juices, nectars, and tea. The milk sales contribute the majority of the total revenue. Parmalat has operations throughout the world with five geographic operating segments: Europe, North America, Latin America, Africa, and Oceania. Among all the countries in which the firm operates, Italy contributes the vast majority of total sales.
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