Evolution Petroleum has a quick ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Evolution Petroleum's Quick Ratio or its related term are showing as below:
EPM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.14 Med: 5.64 Max: 15.33
Current: 1.46
During the past 13 years, Evolution Petroleum's highest Quick Ratio was 15.33. The lowest was 1.14. And the median was 5.64.
EPM's Quick Ratio is ranked better than 62.51% of 1075
companies
in the Oil & Gas industry
Industry Median: 1.11
vs EPM: 1.46
Evolution Petroleum Quick Ratio Historical Data
The historical data trend for Evolution Petroleum'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 Evolution Petroleum's Quick Ratio
For the Oil & Gas E&P subindustry, Evolution Petroleum'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.
Evolution Petroleum's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Evolution Petroleum's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Evolution Petroleum's Quick Ratio falls into.
Evolution Petroleum 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.
Evolution Petroleum's Quick Ratio for the fiscal year that ended in Jun. 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.
Evolution Petroleum (AMEX:EPM) 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.
Evolution Petroleum Quick Ratio Related Terms
Thank you for viewing the detailed overview of Evolution Petroleum's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Evolution Petroleum (Evolution Petroleum) Business Description
Evolution Petroleum Corp is an independent oil and gas company operating in the US. It is engaged primarily in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company's revenues are primarily generated from its crude oil, natural gas and NGL production from the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field in Wyoming; and the Delhi Field in Northeast Louisiana. The revenue generated by the company includes royalty, mineral and working interests.
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