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. Parex Resources's quick ratio for the quarter that ended in Dec. 2023 was 1.29.
Parex Resources has a quick ratio of 1.29. It generally indicates good short-term financial strength.
The historical rank and industry rank for Parex Resources's Quick Ratio or its related term are showing as below:
PARXF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.96 Med: 1.77 Max: 3.6
Current: 1.29
During the past 13 years, Parex Resources's highest Quick Ratio was 3.60. The lowest was 0.96. And the median was 1.77.
PARXF's Quick Ratio is ranked better than 56.72% of 1079
companies
in the Oil & Gas industry
Industry Median: 1.11
vs PARXF: 1.29
Parex Resources Quick Ratio Historical Data
The historical data trend for Parex Resources'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 Parex Resources's Quick Ratio
For the Oil & Gas E&P subindustry, Parex Resources'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.
Parex Resources's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Parex Resources's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Parex Resources's Quick Ratio falls into.
Parex Resources 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.
Parex Resources'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.
Parex Resources (OTCPK:PARXF) 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.
Parex Resources Quick Ratio Related Terms
Thank you for viewing the detailed overview of Parex Resources's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Parex Resources (Parex Resources) Business Description
Parex Resources Inc engages in exploration, development, and production of crude oil. The company brings technology utilized in the Western Canada Sedimentary Basin to South American basins with large oil-in-place potential. Majority of the company's properties are focused in Colombia, where it pays a royalty or tax to the government for its operations. Parex depends on a team of geologists and geophysicists, in partnership with technologies such as 3D seismic surveying, to help exploration efforts. Oil production is sold to a small basket of participants in South and North America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PARXF has been successfully added to your 