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. Joy Global's quick ratio for the quarter that ended in Jan. 2017 was 1.39.
Joy Global has a quick ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Joy Global's Quick Ratio or its related term are showing as below:
JOY's Quick Ratio is not ranked *
in the Farm & Heavy Construction Machinery industry.
Industry Median: 1.1 * Ranked among companies with meaningful Quick Ratio only.
Joy Global Quick Ratio Historical Data
The historical data trend for Joy Global'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 Joy Global's Quick Ratio
For the Farm & Heavy Construction Machinery subindustry, Joy Global'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.
Joy Global's Quick Ratio Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Joy Global's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Joy Global's Quick Ratio falls into.
Joy Global 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.
Joy Global's Quick Ratio for the fiscal year that ended in Oct. 2016 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.
Joy Global (NYSE:JOY) 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.
Joy Global Quick Ratio Related Terms
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Milwaukee-based Joy Global manufactures electric shovels, excavators, drills, and other mining equipment for use in surface (through its P&H brand) and underground mines (through the Joy name). Joy Global generated 59% of 2015 sales from coal customers and 32% of sales in the United States. The company was formed in 2001 after the bankruptcy and restructuring of Harnischfeger Industries.
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