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. Prism Johnson's quick ratio for the quarter that ended in Dec. 2023 was 0.00.
Prism Johnson has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Prism Johnson's Quick Ratio or its related term are showing as below:
BOM:500338'
s Quick Ratio Range Over the Past 10 Years
Min: 0.45 Med: 0.51 Max: 0.66
Current: 0.51
During the past 13 years, Prism Johnson's highest Quick Ratio was 0.66. The lowest was 0.45. And the median was 0.51.
BOM:500338's Quick Ratio is ranked worse than 83.59% of 390
companies
in the Building Materials industry
Industry Median: 0.97
vs BOM:500338: 0.51
Prism Johnson Quick Ratio Historical Data
The historical data trend for Prism Johnson'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 Prism Johnson's Quick Ratio
For the Building Materials subindustry, Prism Johnson'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.
Prism Johnson's Quick Ratio Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Prism Johnson's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Prism Johnson's Quick Ratio falls into.
Prism Johnson 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.
Prism Johnson's Quick Ratio for the fiscal year that ended in Mar. 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.
Prism Johnson (BOM:500338) 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.
Prism Johnson Quick Ratio Related Terms
Thank you for viewing the detailed overview of Prism Johnson's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Prism Johnson Ltd is an integrated building materials company that makes cement products. Prism creates Portland pozzolana cement and sells it under multiple brand names that include Champion, Hi-Tech, and DuraTech. Prism operates two subsidiaries that supplement its core cement offerings: H&R Johnson and RMC Readymix. H&R Johnson builds sanitary products and ceramic tiles for kitchens and bathrooms. RMC Readymix sells ready-mixed concrete under brand names that include Enviroprotectcrete, Thermocrete, and Dycrete. It has three business segments Cement; Tile and Bath (HRJ) and Ready Mixed Concrete (RMC). The company generates the vast majority of its revenue in India.
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