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. Maxim Power's quick ratio for the quarter that ended in Dec. 2023 was 3.48.
Maxim Power has a quick ratio of 3.48. It generally indicates good short-term financial strength.
The historical rank and industry rank for Maxim Power's Quick Ratio or its related term are showing as below:
MXGFF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.82 Med: 2.58 Max: 16.22
Current: 3.48
During the past 13 years, Maxim Power's highest Quick Ratio was 16.22. The lowest was 0.82. And the median was 2.58.
The historical data trend for Maxim Power'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 Utilities - Independent Power Producers subindustry, Maxim Power'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.
Maxim Power Quick Ratio Distribution
For the Utilities - Independent Power Producers industry and Utilities sector, Maxim Power's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Maxim Power's Quick Ratio falls into.
Maxim Power 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.
Maxim Power's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
Maxim Power (OTCPK:MXGFF) 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.
Maxim Power Quick Ratio Related Terms
Thank you for viewing the detailed overview of Maxim Power's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Maxim Power Corp is an independent power producer. It is focused entirely on power projects in Alberta. Its core asset is the 204MW H.R. Milner Plant, M2, in Grande Cache, AB, a state-of-the-art natural gas-fired power plant that went online in Q2, 2020. The company is increasing the capacity of M2 to approximately 300 MW and concurrently will realize an improvement in the efficiency of the plant by investing in heat recovery combined cycle technology. Further, MAXIM continues to explore further development options in Alberta, including its gas-fired generation projects and its wind power generation project.
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