Megado Minerals (ASX:MEG) Quick Ratio : 43.24 (As of Jun. 2024)

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What is Megado Minerals 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. Megado Minerals's quick ratio for the quarter that ended in Jun. 2024 was 43.24.

Megado Minerals has a quick ratio of 43.24. It generally indicates good short-term financial strength.

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

ASX:MEG' s Quick Ratio Range Over the Past 10 Years
Min: 3.78 Med: 12.76 Max: 46.32
Current: 43.24

During the past 4 years, Megado Minerals's highest Quick Ratio was 46.32. The lowest was 3.78. And the median was 12.76.

ASX:MEG's Quick Ratio is ranked better than
97.29% of 2654 companies
in the Metals & Mining industry
Industry Median: 1.52 vs ASX:MEG: 43.24

Megado Minerals Quick Ratio Historical Data

The historical data trend for Megado Minerals'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.

Megado Minerals Quick Ratio Chart

Megado Minerals Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Quick Ratio

14.27

7.86

3.78

25.81

Megado Minerals Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Quick Ratio	Get a 7-Day Free Trial			3.80	3.78	46.32	25.81	43.24

Competitive Comparison of Megado Minerals's Quick Ratio

For the Other Industrial Metals & Mining subindustry, Megado Minerals'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.

Megado Minerals's Quick Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Megado Minerals's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Megado Minerals's Quick Ratio falls into.

Megado Minerals 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.

Megado Minerals's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1.213	-	0)	/	0.047
	=	25.81

Megado Minerals's Quick Ratio for the quarter that ended in Jun. 2024 is calculated as

Quick Ratio (Q: Jun. 2024 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(0.735	-	0)	/	0.017
	=	43.24

Megado Minerals (ASX:MEG) 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.

Megado Minerals Quick Ratio Related Terms

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Megado Minerals Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Megado Minerals Ltd (ASX:MEG) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

197 St Georges Terrace, Level 12, Perth, WA, AUS, 6000

Website

https://www.megadominerals.com

Megado Minerals Ltd is an exploration company focused on critical minerals in North America. The company's project portfolio includes North Fork Rare Earth Project. The North Fork Project is located north-west of Salmon in the Salmon Challis National Forest, Lemhi County, Idaho. The group operates in one industry being the exploration of critical minerals. The geographical areas that the entity operates in are Australia, USA and Ethiopia.