Australian Ethical Investment has a quick ratio of 2.60. It generally indicates good short-term financial strength.
The historical rank and industry rank for Australian Ethical Investment's Quick Ratio or its related term are showing as below:
ASX:AEF'
s Quick Ratio Range Over the Past 10 Years
Min: 1.88 Med: 2.45 Max: 3.6
Current: 2.6
During the past 13 years, Australian Ethical Investment's highest Quick Ratio was 3.60. The lowest was 1.88. And the median was 2.45.
ASX:AEF's Quick Ratio is ranked worse than 51.34% of 709
companies
in the Asset Management industry
Industry Median: 2.81
vs ASX:AEF: 2.60
Australian Ethical Investment (ASX:AEF) 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.
Australian Ethical Investment Quick Ratio Related Terms
Australian Ethical Investment Quick Ratio Historical Data
* 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 Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment Quick Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's Quick Ratio falls into.
Australian Ethical Investment 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.
* 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.
Australian Ethical Investment (ASX:AEF) has a Quick Ratio of 2.60 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Australian Ethical Investment and its competitors. This is near median its historical median of 2.45. Over the past decade, Australian Ethical Investment's Quick Ratio has ranged from 1.88 to 3.60. According to the industry distribution chart, Australian Ethical Investment ranks #364 out of 709 companies in the Asset Management industry, placing it in the top 51.3%.
Is Australian Ethical Investment's Quick Ratio too high?
Australian Ethical Investment's current Quick Ratio of 2.60 is near median its 10-year median of 2.45. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 3.60. The Asset Management industry median Quick Ratio is 2.81. Australian Ethical Investment's value of 2.60 is 7.5% below this industry median. Based on the distribution chart, Australian Ethical Investment ranks #364 out of 709 companies in the Asset Management industry, which is below the industry midpoint. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's Quick Ratio compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #364 out of 709 companies for Quick Ratio. This places Australian Ethical Investment in the lower half of its industry. The industry median Quick Ratio is 2.81. Australian Ethical Investment's value of 2.60 is 7.5% below this benchmark. Historically, Australian Ethical Investment's own Quick Ratio has ranged from 1.88 to 3.60 over the past decade. While the company's 10-year median is 2.45 vs. the industry median of 2.81, Australian Ethical Investment has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for an Asset Management company?
The median Quick Ratio among Asset Management companies is 2.81, based on 709 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Ethical Investment's current Quick Ratio of 2.60 is 7.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Australian Ethical Investment and its competitors. For the Asset Management industry, the median Quick Ratio is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current Quick Ratio is 2.60, which is near median its own 10-year median of 2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.21 — trading 33.8% below its estimated fair value. The current Quick Ratio is 2.60, which is near median its 10-year median of 2.45 and 7.5% below the Asset Management industry median of 2.81. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Australian Ethical Investment (ASX:AEF), the current Quick Ratio is 2.60 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.21 is trading 33.8% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
Quick Ratio: 2.60 (near median its 10-year median of 2.45)
GF Value™: A$6.36 vs. price of A$4.21 (33.8% below fair value)
Industry Position: 7.5% below the Asset Management median (#364 of 709)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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