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. First Lithium's quick ratio for the quarter that ended in Jun. 2025 was 1.77.
First Lithium has a quick ratio of 1.77. It generally indicates good short-term financial strength.
The historical rank and industry rank for First Lithium's Quick Ratio or its related term are showing as below:
ASX:FL1'
s Quick Ratio Range Over the Past 10 Years
Min: 0.56 Med: 13.44 Max: 50.08
Current: 1.77
During the past 13 years, First Lithium's highest Quick Ratio was 50.08. The lowest was 0.56. And the median was 13.44.
ASX:FL1's Quick Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 2.32
vs ASX:FL1: 1.77
First Lithium (ASX:FL1) 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.
First Lithium Quick Ratio Related Terms
First Lithium Quick Ratio Historical Data
* Premium members only.
The historical data trend for First Lithium'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 Other Industrial Metals & Mining subindustry, First Lithium'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.
First Lithium Quick Ratio vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, First Lithium's Quick Ratio distribution charts can be found below:
* The bar in red indicates where First Lithium's Quick Ratio falls into.
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.
First Lithium's Quick Ratio for the fiscal year that ended in Jun. 2025 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.
First Lithium (ASX:FL1) has a Quick Ratio of 1.77 as of Jun. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on First Lithium and its competitors. This is 87% below median its historical median of 13.44. Over the past decade, First Lithium's Quick Ratio has ranged from 0.56 to 50.08.
Is First Lithium's Quick Ratio too high?
First Lithium's current Quick Ratio of 1.77 is 87% below median its 10-year median of 13.44. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 50.08. The Metals & Mining industry median Quick Ratio is 2.32. First Lithium's value of 1.77 is 23.7% below this industry median. Overall, First Lithium has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does First Lithium's Quick Ratio compare to competitors?
First Lithium's Quick Ratio of 1.77 can be compared against companies in the Metals & Mining industry. The industry median Quick Ratio is 2.32. First Lithium's value of 1.77 is 23.7% below this benchmark. Historically, First Lithium's own Quick Ratio has ranged from 0.56 to 50.08 over the past decade. While the company's 10-year median is 13.44 vs. the industry median of 2.32, First Lithium 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 a Metals & Mining company?
The median Quick Ratio among Metals & Mining companies is 2.32, based on 2,637 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. First Lithium's current Quick Ratio of 1.77 is 23.7% 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 First Lithium and its competitors. For the Metals & Mining industry, the median Quick Ratio is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Lithium's current Quick Ratio is 1.77, which is 87% below median its own 10-year median of 13.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Lithium stock overvalued right now?
First Lithium (ASX:FL1) has a current Quick Ratio of 1.77. The current Quick Ratio is 1.77, which is 87% below median its 10-year median of 13.44 and 23.7% below the Metals & Mining industry median of 2.32. First Lithium's overall GF Score™ is 22/100 with 4 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 First Lithium (ASX:FL1), the current Quick Ratio is 1.77 as of Jun. 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.
First Lithium Ltd is a mineral exploration and development company. It is focused on West African mineral exploration and development. The company is predominantly engaged in the acquisition, and progress exploration, of the two lithium mineral bearing permits, Faraba and Gouna in Mali (the Mali Lithium Project).
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