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. Beach Energy's quick ratio for the quarter that ended in Dec. 2023 was 0.94.
Beach Energy has a quick ratio of 0.94. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Beach Energy's Quick Ratio or its related term are showing as below:
BCHEY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.81 Med: 1.28 Max: 5.13
Current: 0.94
During the past 13 years, Beach Energy's highest Quick Ratio was 5.13. The lowest was 0.81. And the median was 1.28.
BCHEY's Quick Ratio is ranked worse than 58.25% of 1073
companies
in the Oil & Gas industry
Industry Median: 1.11
vs BCHEY: 0.94
Beach Energy Quick Ratio Historical Data
The historical data trend for Beach Energy'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.
Competitive Comparison of Beach Energy's Quick Ratio
For the Oil & Gas E&P subindustry, Beach Energy'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.
Beach Energy's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Beach Energy's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Beach Energy's Quick Ratio falls into.
Beach Energy 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.
Beach Energy's Quick Ratio for the fiscal year that ended in Jun. 2023 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.
Beach Energy (OTCPK:BCHEY) 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.
Beach Energy Quick Ratio Related Terms
Thank you for viewing the detailed overview of Beach Energy's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Beach produces oil, gas, and gas liquids from numerous joint ventures in the onshore Cooper and Eromanga basins. Beach merged with Cooper Basin joint-venture partner Drillsearch Energy Limited in March 2016, which increased equity production to about 10 million barrels of oil equivalent. This more than doubled to over 20 million barrels of oil equivalent following the successful purchase of Lattice from Origin Energy in 2018. The average field life is 10 years based on forecast production and 255 mmboe of proven and probable reserves. We credit life of around 15 years, assuming substantial conversion of 2C contingent resources into reserve category with drilling. Shale gas resources are blue-sky.
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