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. NHK Spring Co's quick ratio for the quarter that ended in Dec. 2023 was 1.59.
NHK Spring Co has a quick ratio of 1.59. It generally indicates good short-term financial strength.
The historical rank and industry rank for NHK Spring Co's Quick Ratio or its related term are showing as below:
TSE:5991'
s Quick Ratio Range Over the Past 10 Years
Min: 1.23 Med: 1.34 Max: 1.62
Current: 1.62
During the past 13 years, NHK Spring Co's highest Quick Ratio was 1.62. The lowest was 1.23. And the median was 1.34.
TSE:5991's Quick Ratio is ranked better than 73.49% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs TSE:5991: 1.62
NHK Spring Co Quick Ratio Historical Data
The historical data trend for NHK Spring Co'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 NHK Spring Co's Quick Ratio
For the Auto Parts subindustry, NHK Spring Co'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.
NHK Spring Co's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, NHK Spring Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where NHK Spring Co's Quick Ratio falls into.
NHK Spring Co 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.
NHK Spring Co'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.
NHK Spring Co (TSE:5991) 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.
NHK Spring Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of NHK Spring Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NHK Spring Co Ltd is a Japanese manufacturer of suspension springs for automobiles and precision springs used in hard disk drive components. The company also produces leaf springs, coil springs, stabilizer bars, torsion bars, gas springs, automobile seats and seating components, hard disk drives suspensions and mechanical components, LCD/semiconductor testing probe units, and industrial machinery and equipment parts. The automotive suspension springs and precision springs segments and automotive seating segment generate the majority of NHK Spring's revenue. Geographically, Japan is the largest end market followed by other Asian countries and North America.
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