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. Rautaruukki Oyj's quick ratio for the quarter that ended in Sep. 2014 was 0.51.
Rautaruukki Oyj has a quick ratio of 0.51. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Rautaruukki Oyj's Quick Ratio or its related term are showing as below:
OHEL:RTRKS'
s Quick Ratio Range Over the Past 10 Years
Min: 0.25 Med: 0.58 Max: 0.91
Current: 0.51
During the past 13 years, Rautaruukki Oyj's highest Quick Ratio was 0.91. The lowest was 0.25. And the median was 0.58.
OHEL:RTRKS's Quick Ratio is not ranked
in the Steel industry.
Industry Median: 1.04
vs OHEL:RTRKS: 0.51
Rautaruukki Oyj Quick Ratio Historical Data
The historical data trend for Rautaruukki Oyj'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 Rautaruukki Oyj's Quick Ratio
For the Steel subindustry, Rautaruukki Oyj'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.
Rautaruukki Oyj's Quick Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Rautaruukki Oyj's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rautaruukki Oyj's Quick Ratio falls into.
Rautaruukki Oyj 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.
Rautaruukki Oyj's Quick Ratio for the fiscal year that ended in Dec. 2013 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.
Rautaruukki Oyj (OHEL:RTRKS) 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.
Rautaruukki Oyj Quick Ratio Related Terms
Thank you for viewing the detailed overview of Rautaruukki Oyj's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.
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