* 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 Godfrey Phillips India's Quick Ratio
For the Tobacco subindustry, Godfrey Phillips India'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.
Godfrey Phillips India's Quick Ratio Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Godfrey Phillips India's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Godfrey Phillips India's Quick Ratio falls into.
Godfrey Phillips India 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.
Godfrey Phillips India'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.
Godfrey Phillips India (BOM:500163) 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.
Godfrey Phillips India Quick Ratio Related Terms
Thank you for viewing the detailed overview of Godfrey Phillips India's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Godfrey Phillips India Ltd is a cigarette manufacturer that sells its products globally under brand names including Four Square, Red & White, Cavanders, Jaisalmer, Stellar, and Marlboro which it has a license to sell in India. Cigarette sales account for the vast majority of the total revenue, although the company also sells tea and other retail products. The company operates through three reportable segments: Cigarette, Tobacco, and Related Products; Retail and Related Products; and Others. The majority of the Godfrey Phillips sales are generated in India, but the company exports some of its cigarette brands and cuts tobacco.
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