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. Thai Rayon PCL's quick ratio for the quarter that ended in Sep. 2024 was 0.38.
Thai Rayon PCL has a quick ratio of 0.38. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Thai Rayon PCL's Quick Ratio or its related term are showing as below:
BKK:TR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.34 Med: 1.73 Max: 4.87
Current: 0.38
During the past 13 years, Thai Rayon PCL's highest Quick Ratio was 4.87. The lowest was 0.34. And the median was 1.73.
The historical data trend for Thai Rayon PCL'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 Thai Rayon PCL's Quick Ratio
For the Textile Manufacturing subindustry, Thai Rayon PCL'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.
Thai Rayon PCL's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Thai Rayon PCL's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Thai Rayon PCL's Quick Ratio falls into.
Thai Rayon PCL 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.
Thai Rayon PCL'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.
Thai Rayon PCL (BKK:TR) 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.
Thai Rayon PCL Quick Ratio Related Terms
Thank you for viewing the detailed overview of Thai Rayon PCL's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Thai Rayon PCL is a company based in Thailand that mainly manufactures viscose rayon staple fiber and anhydrous sodium sulphate for sale in domestic and export markets. The company also produces anhydrous sodium sulphate as a by-product, which is widely used in Thailand by detergent, pulp, glass, leather, and textile industries. Thai Rayon has made investments in backward and forward integration projects in Thailand, Indonesia, Laos, China, and Canada, as well as various diversification projects in Thailand and overseas. The company's operations focus on a single industry segment, which is the manufacturing and distribution of viscose rayon staple fiber and by-products for both domestic and export markets.
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