Azure Power Global has a quick ratio of 0.50. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Azure Power Global's Quick Ratio or its related term are showing as below:
AZREF's Quick Ratio is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 1.24 * Ranked among companies with meaningful Quick Ratio only.
Azure Power Global (OTCPK:AZREF) 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.
Azure Power Global Quick Ratio Related Terms
Azure Power Global Quick Ratio Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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 Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global Quick Ratio vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Azure Power Global'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.
Azure Power Global's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Azure Power Global (AZREF) has a Quick Ratio of 0.50 as of Mar. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Azure Power Global and its competitors.
Is Azure Power Global's Quick Ratio too high?
Azure Power Global's current Quick Ratio is 0.50. The Utilities - Independent Power Producers industry median Quick Ratio is 1.24. Azure Power Global's value of 0.50 is 59.7% below this industry median. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's Quick Ratio compare to SAFX and VGAS?
Azure Power Global's Quick Ratio of 0.50 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Quick Ratio is 1.24. Azure Power Global's value of 0.50 is 59.7% below this benchmark. 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 Utilities - Independent Power Producers company?
The median Quick Ratio among Utilities - Independent Power Producers companies is 1.24, based on 446 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. Azure Power Global's current Quick Ratio of 0.50 is 59.7% 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 Azure Power Global and its competitors. For the Utilities - Independent Power Producers industry, the median Quick Ratio is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current Quick Ratio is 0.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current Quick Ratio of 0.50. The current Quick Ratio is 0.50 and 59.7% below the Utilities - Independent Power Producers industry median of 1.24. Azure Power Global's overall GF Score™ is 12/100. 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 Azure Power Global (AZREF), the current Quick Ratio is 0.50 as of Mar. 2024. 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.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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