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. Graphjet Technology's quick ratio for the quarter that ended in Sep. 2022 was 0.35.
Graphjet Technology has a quick ratio of 0.35. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Graphjet Technology's Quick Ratio or its related term are showing as below:
GTI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.35 Max: 0.35
Current: 0.35
During the past 2 years, Graphjet Technology's highest Quick Ratio was 0.35. The lowest was 0.35. And the median was 0.35.
GTI's Quick Ratio is ranked worse than 96.36% of 1567
companies
in the Chemicals industry
Industry Median: 1.39
vs GTI: 0.35
Graphjet Technology Quick Ratio Historical Data
The historical data trend for Graphjet Technology'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.
* Premium members only.
Graphjet Technology Annual Data
Trend
Sep21
Sep22
Quick Ratio
-
0.35
Graphjet Technology Semi-Annual Data
Sep21
Sep22
Quick Ratio
-
0.35
Competitive Comparison
For the Specialty Chemicals subindustry, Graphjet Technology'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.
Graphjet Technology Quick Ratio Distribution
For the Chemicals industry and Basic Materials sector, Graphjet Technology's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Graphjet Technology's Quick Ratio falls into.
Graphjet Technology 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.
Graphjet Technology's Quick Ratio for the fiscal year that ended in Sep. 2022 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.
Graphjet Technology (NAS:GTI) 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.
Graphjet Technology Quick Ratio Related Terms
Thank you for viewing the detailed overview of Graphjet Technology's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Graphjet Technology (Graphjet Technology) Business Description
Graphjet Technology Sdn Bhd is a fast-growing organization that aims to be a global leader in generating value by producing the most innovative, green, and low-cost graphene, graphite and graphene-based anode materials. Graphjet is the owner of the state-of-the-art technology for the manufacture of artificial graphene and graphite used to produce critical raw materials used in a variety of industries. Its current primary business is to develop its palm-based artificial graphene and graphite manufacturing business with its proprietary patentable technology to utilize palm kernel shells in the process of manufacturing and production of artificial graphene and graphite and related application products.
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