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. SKF AB's quick ratio for the quarter that ended in Dec. 2023 was 1.33.
SKF AB has a quick ratio of 1.33. It generally indicates good short-term financial strength.
The historical rank and industry rank for SKF AB's Quick Ratio or its related term are showing as below:
SKFRY'
s Quick Ratio Range Over the Past 10 Years
Min: 1.25 Med: 1.4 Max: 1.59
Current: 1.33
During the past 13 years, SKF AB's highest Quick Ratio was 1.59. The lowest was 1.25. And the median was 1.40.
SKFRY's Quick Ratio is ranked worse than 52.31% of 3024
companies
in the Industrial Products industry
Industry Median: 1.38
vs SKFRY: 1.33
SKF AB Quick Ratio Historical Data
The historical data trend for SKF 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.
For the Tools & Accessories subindustry, SKF 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.
SKF AB's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, SKF AB's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SKF AB's Quick Ratio falls into.
SKF 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.
SKF AB'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.
SKF AB (OTCPK:SKFRY) 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.
SKF AB Quick Ratio Related Terms
Thank you for viewing the detailed overview of SKF AB's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF, along with the Schaeffler Group, are the top two global ball bearing suppliers followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches as ball bearings for industrial purposes are engineered for specific applications. SKF is based out of Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, which has a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.
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