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Equatorial Resources (ASX:EQX) Quick Ratio : 7.53 (As of Dec. 2023)


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What is Equatorial Resources Quick Ratio?

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. Equatorial Resources's quick ratio for the quarter that ended in Dec. 2023 was 7.53.

Equatorial Resources has a quick ratio of 7.53. It generally indicates good short-term financial strength.

The historical rank and industry rank for Equatorial Resources's Quick Ratio or its related term are showing as below:

ASX:EQX' s Quick Ratio Range Over the Past 10 Years
Min: 6.71   Med: 142.35   Max: 388.19
Current: 7.53

During the past 13 years, Equatorial Resources's highest Quick Ratio was 388.19. The lowest was 6.71. And the median was 142.35.

ASX:EQX's Quick Ratio is ranked better than
95.91% of 636 companies
in the Steel industry
Industry Median: 0.975 vs ASX:EQX: 7.53

Equatorial Resources Quick Ratio Historical Data

The historical data trend for Equatorial 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.

* Premium members only.

Equatorial Resources Quick Ratio Chart

Equatorial Resources Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 287.18 181.91 216.27 62.28 6.71

Equatorial Resources Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 132.42 62.28 69.65 6.71 7.53

Competitive Comparison of Equatorial Resources's Quick Ratio

For the Steel subindustry, Equatorial 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.


Equatorial Resources's Quick Ratio Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Equatorial Resources's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Equatorial Resources's Quick Ratio falls into.



Equatorial 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.

Equatorial Resources's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Quick Ratio (A: Jun. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(16.695-0)/2.488
=6.71

Equatorial Resources's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(15.736-0)/2.09
=7.53

* 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.


Equatorial Resources  (ASX:EQX) 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.


Equatorial Resources Quick Ratio Related Terms

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Equatorial Resources (ASX:EQX) Business Description

Traded in Other Exchanges
N/A
Address
28 The Esplanade, Level 9, BGC Centre, Perth, WA, AUS, 6000
Equatorial Resources Ltd is an iron ore exploration and development company. The company's iron ore projects are located in the Republic of Congo (ROC). The company focuses on advancing its existing mineral resource assets in Africa, as well as searching for new opportunities in the resources sector. It operates the Badondo Iron Project located in the northwest region of the Republic of Congo. Central & West Africa hosts a regional distribution of undeveloped world-class high-grade iron ore deposits. It is comprised of the same rock type and similar geological formation as the Carajas System in South America.