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. Newcrest Mining's quick ratio for the quarter that ended in Jun. 2023 was 1.05.
Newcrest Mining has a quick ratio of 1.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for Newcrest Mining's Quick Ratio or its related term are showing as below:
NCMGY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.39 Med: 1.05 Max: 2.39
Current: 1.05
During the past 13 years, Newcrest Mining's highest Quick Ratio was 2.39. The lowest was 0.39. And the median was 1.05.
NCMGY's Quick Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 1.805
vs NCMGY: 1.05
Newcrest Mining Quick Ratio Historical Data
The historical data trend for Newcrest Mining'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 Newcrest Mining's Quick Ratio
For the Gold subindustry, Newcrest Mining'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.
Newcrest Mining's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Newcrest Mining's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Newcrest Mining's Quick Ratio falls into.
Newcrest Mining 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.
Newcrest Mining's Quick Ratio for the fiscal year that ended in Jun. 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.
Newcrest Mining (OTCPK:NCMGY) 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.
Newcrest Mining Quick Ratio Related Terms
Thank you for viewing the detailed overview of Newcrest Mining's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Newcrest Mining (Newcrest Mining) Business Description
Newcrest is an Australia-based gold and, to a lesser extent, copper miner. Operations are mainly in Australia and Papua New Guinea. The company also owns a 32% stake in the Fruta Del Norte gold mine in Ecuador, while the acquisition of Brucejack in 2022 adds to its 70% stake in the Red Chris mine in Canada. The company is likely to produce around 2 million ounces of gold per year over the next decade, making it one of the larger global gold producers but still only accounting for less than 2% of total supply. Cash costs are below the industry average, underpinned by improvements at Lihir and Cadia. Organic growth options include its Havieron prospect, the Red Chris underground mine, and the high-grade Wafi-Golpu copper-gold prospect in PNG.
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