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. Cementos Argos S.A.'s quick ratio for the quarter that ended in Sep. 2023 was 0.72.
Cementos Argos S.A. has a quick ratio of 0.72. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Cementos Argos S.A.'s Quick Ratio or its related term are showing as below:
CMTOY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.45 Med: 0.63 Max: 0.8
Current: 0.72
During the past 13 years, Cementos Argos S.A.'s highest Quick Ratio was 0.80. The lowest was 0.45. And the median was 0.63.
CMTOY's Quick Ratio is ranked worse than 68.38% of 389
companies
in the Building Materials industry
Industry Median: 0.97
vs CMTOY: 0.72
Cementos Argos S.A. Quick Ratio Historical Data
The historical data trend for Cementos Argos S.A.'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.
For the Building Materials subindustry, Cementos Argos S.A.'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.
Cementos Argos S.A. Quick Ratio Distribution
For the Building Materials industry and Basic Materials sector, Cementos Argos S.A.'s Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cementos Argos S.A.'s Quick Ratio falls into.
Cementos Argos S.A. 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.
Cementos Argos S.A.'s Quick Ratio for the fiscal year that ended in Dec. 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.
Cementos Argos S.A. (OTCPK:CMTOY) 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.
Cementos Argos S.A. Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cementos Argos S.A.'s Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cementos Argos S.A. (Cementos Argos S.A.) Business Description
Cementos Argos S.A. is a cement producing company. In terms of the concrete business it is Colombia's leading producer and the second-largest producer in the United States. The company's corporate purpose is the exploitation of the cement industry, the production of concrete mixes and any other materials or items made of cement, lime or clay, the acquisition and exploitation of minerals or deposits of exploitable minerals in the cement industry and similar rights to explore and mine the aforementioned minerals, whether by concession, privilege, lease or other title.
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