Shengkai Innovations (Shengkai Innovations) Quick Ratio : 33.06 (As of Mar. 2013)

Shengkai Innovations Quick Ratio Chart

Shengkai Innovations Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Quick Ratio	Get a 7-Day Free Trial															25.86	22.63	27.70	28.72	33.06

Competitive Comparison of Shengkai Innovations's Quick Ratio

For the Industrial Distribution subindustry, Shengkai Innovations'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.

Shengkai Innovations's Quick Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Shengkai Innovations's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Shengkai Innovations's Quick Ratio falls into.

Shengkai Innovations 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.

Shengkai Innovations's Quick Ratio for the fiscal year that ended in Jun. 2012 is calculated as

Shengkai Innovations's Quick Ratio for the quarter that ended in Mar. 2013 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.

Shengkai Innovations  (OTCPK:VALV) 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.

Shengkai Innovations Quick Ratio Related Terms

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Shengkai Innovations (Shengkai Innovations) Business Description