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Hindustan Petroleum (BOM:500104) 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.
Hindustan Petroleum Quick Ratio Related Terms
Hindustan Petroleum Quick Ratio Historical Data
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The historical data trend for Hindustan Petroleum'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.
BOM:500104 vs MPC, VLO, PSX: Quick Ratio Comparison
For the Oil & Gas Refining & Marketing subindustry, Hindustan Petroleum'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.
Hindustan Petroleum Quick Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hindustan Petroleum's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Hindustan Petroleum'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.
Hindustan Petroleum's Quick Ratio for the fiscal year that ended in Mar. 2026 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.
Hindustan Petroleum (BOM:500104) has a Quick Ratio of 0.00 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Hindustan Petroleum and its competitors. Over the past decade, Hindustan Petroleum's Quick Ratio has ranged from 0.19 to 0.51. According to the industry distribution chart, Hindustan Petroleum ranks #955 out of 1014 companies in the Oil & Gas industry, placing it in the top 94.2%.
Is Hindustan Petroleum's Quick Ratio too high?
Hindustan Petroleum's current Quick Ratio is 0.00. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 0.51. Based on the distribution chart, Hindustan Petroleum ranks #955 out of 1014 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Hindustan Petroleum has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Petroleum's Quick Ratio compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Hindustan Petroleum ranks #955 out of 1014 companies for Quick Ratio. This places Hindustan Petroleum in the lower half of its industry. The industry median Quick Ratio is 1.12. Historically, Hindustan Petroleum's own Quick Ratio has ranged from 0.19 to 0.51 over the past decade. 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 Oil & Gas company?
The median Quick Ratio among Oil & Gas companies is 1.12, based on 1,014 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. 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 Hindustan Petroleum and its competitors. For the Oil & Gas industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Petroleum's current Quick Ratio is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Petroleum (BOM:500104) is currently considered Fairly Valued. The stock's GF Value™ is ₹415.68, compared to a current price of ₹389.55 — trading 6.3% below its estimated fair value. The current Quick Ratio is 0.00. Hindustan Petroleum's overall GF Score™ is 67/100 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 Hindustan Petroleum (BOM:500104), the current Quick Ratio is 0.00 as of Jun. 2026. 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.
Is Hindustan Petroleum (BOM:500104) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Petroleum stock appears to be undervalued.
The current stock price of ₹389.55 is trading 6.3% below its estimated GF Value™ of ₹415.68.
GuruFocus considers Hindustan Petroleum to be Fairly Valued.
Key valuation signals for BOM:500104:
Quick Ratio: 0.00
GF Value™: ₹415.68 vs. price of ₹389.55 (6.3% below fair value)
No single metric tells the full story. See the BOM:500104 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Petroleum Corp Ltd. (HPCL) is an Indian government enterprise that refines crude oil and manufactures petroleum-based products. The company operates a diverse group of refineries that process several grades of lubes, specialties, and greases along with a variety of petroleum products. HPCL also controls an extensive network of pipelines in India that transport a variety of hydrocarbon-based products. In tandem with its host of pipelines, marketing and distribution efforts are carried out through a group of terminals, service stations, bottling plants, marketing offices, and other facilities. Hindustan's products are sold throughout India. The business is divided into downstream and other operations, with downstream activities generating the maximum revenue.
67GF Score
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