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Hennes & Mauritz AB (Hennes & Mauritz AB) Quick Ratio

: 0.60 (As of Feb. 2024)
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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. Hennes & Mauritz AB's quick ratio for the quarter that ended in Feb. 2024 was 0.60.

Hennes & Mauritz AB has a quick ratio of 0.60. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Hennes & Mauritz AB's Quick Ratio or its related term are showing as below:

HNNMY' s Quick Ratio Range Over the Past 10 Years
Min: 0.41   Med: 0.57   Max: 1.24
Current: 0.6

During the past 13 years, Hennes & Mauritz AB's highest Quick Ratio was 1.24. The lowest was 0.41. And the median was 0.57.

HNNMY's Quick Ratio is ranked worse than
76.25% of 1082 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.02 vs HNNMY: 0.60

Hennes & Mauritz AB Quick Ratio Historical Data

The historical data trend for Hennes & Mauritz AB'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.

Hennes & Mauritz AB Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.51 0.48 0.68 0.54 0.64

Hennes & Mauritz AB Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.57 0.52 0.56 0.64 0.60

Competitive Comparison

For the Apparel Manufacturing subindustry, Hennes & Mauritz AB'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.


Hennes & Mauritz AB Quick Ratio Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hennes & Mauritz AB's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Hennes & Mauritz AB's Quick Ratio falls into.



Hennes & Mauritz AB 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.

Hennes & Mauritz AB's Quick Ratio for the fiscal year that ended in Nov. 2023 is calculated as

Quick Ratio (A: Nov. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7547.66-3501.415)/6366.525
=0.64

Hennes & Mauritz AB's Quick Ratio for the quarter that ended in Feb. 2024 is calculated as

Quick Ratio (Q: Feb. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7180.481-3609.038)/5968.964
=0.60

* 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.


Hennes & Mauritz AB  (OTCPK:HNNMY) 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.


Hennes & Mauritz AB Quick Ratio Related Terms

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Hennes & Mauritz AB (Hennes & Mauritz AB) Business Description

Address
Master Samuelsgatan 46A, Stockholm, SWE, SE-106 38
Hennes & Mauritz is a global multibrand fashion conglomerate that was founded in 1947. Its flagship H&M brand accounts for most of revenue, but the newer brands (COS, &Other Stories, Monki, Weekday, and newly launched Arket) are growing a bit faster. H&M commands low-single-digit market share in a fragmented global apparel market. Just under 70% of revenue is generated in Europe and Africa, 14% in Asia and Oceania, and 23% in North and South America. The company operates around 4,400 stores globally of which 3,947 are H&M-brand stores.

Hennes & Mauritz AB (Hennes & Mauritz AB) Headlines