Mitsubishi Motors (Mitsubishi Motors) Quick Ratio : 0.98 (As of Dec. 2023)

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What is Mitsubishi Motors Quick Ratio?

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. Mitsubishi Motors's quick ratio for the quarter that ended in Dec. 2023 was 0.98.

Mitsubishi Motors has a quick ratio of 0.98. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Mitsubishi Motors's Quick Ratio or its related term are showing as below:

MMTOF' s Quick Ratio Range Over the Past 10 Years
Min: 0.81 Med: 1.12 Max: 1.38
Current: 0.98

During the past 13 years, Mitsubishi Motors's highest Quick Ratio was 1.38. The lowest was 0.81. And the median was 1.12.

MMTOF's Quick Ratio is ranked worse than
54.25% of 1307 companies
in the Vehicles & Parts industry
Industry Median: 1.05 vs MMTOF: 0.98

Mitsubishi Motors Quick Ratio Historical Data

The historical data trend for Mitsubishi Motors'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.

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Mitsubishi Motors Quick Ratio Chart

Mitsubishi Motors Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Quick Ratio

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1.13

1.01

1.12

0.88

1.12

Mitsubishi Motors Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Quick Ratio	Get a 7-Day Free Trial															1.19	1.12	1.00	1.01	0.98

Competitive Comparison of Mitsubishi Motors's Quick Ratio

For the Auto Manufacturers subindustry, Mitsubishi Motors'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.

Mitsubishi Motors's Quick Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Mitsubishi Motors's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Mitsubishi Motors's Quick Ratio falls into.

Mitsubishi Motors 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.

Mitsubishi Motors's Quick Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Quick Ratio (A: Mar. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(11034.801	-	2630.351)	/	7536.71
	=	1.12

Mitsubishi Motors's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(10917.91	-	2870.278)	/	8174.008
	=	0.98

Mitsubishi Motors (OTCPK:MMTOF) 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.

Mitsubishi Motors Quick Ratio Related Terms

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Mitsubishi Motors (Mitsubishi Motors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Mitsubishi Motors Corp (OTCPK:MMTOF) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

7211:Japan MMO:Germany

Address

5-33-8, Shiba, Minato - ku, Tokyo, JPN, 108-8410

Website

http://www.mitsubishi-motors.co.jp

Mitsubishi Motors is a Japanese automobile manufacturer. The company principally produces small passenger vehicles, electric and hybrid vehicles, and sport utility vehicles, or SUVs. Mitsubishi Motors is organised into two business segments: automobile business and automobile financing business. The company derives the vast majority of company revenue from the automotive business. Geographically, the company is separated into five regions: Japan, North America, Europe, Asia (excluding Japan), and other. With more than half of its products manufactures in Japan where it also generates the majority of its consolidated revenue, followed by Asia, and North America.