Ashok LeylandBOM:500477 +1.48%88 Quick Ratio is 1.18 as of Mar. 2026, which is 30% above its 10-year median of 0.91. GuruFocus rates BOM:500477 with a GF Score™ of 88/100 and a GF Value™ of ₹128.39 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 211 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks better than 50.24% on this metric.
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. Ashok Leyland's quick ratio for the quarter that ended in Mar. 2026 was 1.18.
Ashok Leyland has a quick ratio of 1.18. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ashok Leyland's Quick Ratio or its related term are showing as below:
BOM:500477'
s Quick Ratio Range Over the Past 10 Years
Min: 0.78 Med: 0.91 Max: 1.18
Current: 1.18
During the past 13 years, Ashok Leyland's highest Quick Ratio was 1.18. The lowest was 0.78. And the median was 0.91.
BOM:500477's Quick Ratio is ranked better than 50.24% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.18
vs BOM:500477: 1.18
Ashok Leyland (BOM:500477) 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.
Ashok Leyland Quick Ratio Related Terms
Ashok Leyland Quick Ratio Historical Data
* Premium members only.
The historical data trend for Ashok Leyland'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:500477 vs CAT, DE, PCAR: Quick Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland'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.
Ashok Leyland Quick Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ashok Leyland'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.
Ashok Leyland'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.
Ashok Leyland (BOM:500477) has a Quick Ratio of 1.18 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Ashok Leyland and its competitors. This is 30% above median its historical median of 0.91. Over the past decade, Ashok Leyland's Quick Ratio has ranged from 0.78 to 1.18. According to the industry distribution chart, Ashok Leyland ranks #105 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 49.8%.
Is Ashok Leyland's Quick Ratio too high?
Ashok Leyland's current Quick Ratio of 1.18 is 30% above median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 1.18. The Farm & Heavy Construction Machinery industry median Quick Ratio is 1.18. Ashok Leyland's value of 1.18 is 0% at this industry median. Based on the distribution chart, Ashok Leyland ranks #105 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Ashok Leyland has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Quick Ratio compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #105 out of 211 companies for Quick Ratio. This puts Ashok Leyland in the upper half of its industry. The industry median Quick Ratio is 1.18. Ashok Leyland's value of 1.18 is 0% at this benchmark. Historically, Ashok Leyland's own Quick Ratio has ranged from 0.78 to 1.18 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 1.18, Ashok Leyland has consistently been at the industry average. 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 a Farm & Heavy Construction Machinery company?
The median Quick Ratio among Farm & Heavy Construction Machinery companies is 1.18, based on 211 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. Ashok Leyland's current Quick Ratio of 1.18 is 0% at 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 Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median Quick Ratio is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current Quick Ratio is 1.18, which is 30% above median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (BOM:500477) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹128.39, compared to a current price of ₹157.55 — trading 22.7% above its estimated fair value. The current Quick Ratio is 1.18, which is 30% above median its 10-year median of 0.91 and 0% at the Farm & Heavy Construction Machinery industry median of 1.18. Ashok Leyland's overall GF Score™ is 88/100 with 1 warning sign 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 Ashok Leyland (BOM:500477), the current Quick Ratio is 1.18 as of Mar. 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 Ashok Leyland (BOM:500477) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹157.55 is trading 22.7% above its estimated GF Value™ of ₹128.39.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for BOM:500477:
Quick Ratio: 1.18 (30% above median its 10-year median of 0.91)
GF Value™: ₹128.39 vs. price of ₹157.55 (22.7% above fair value)
Industry Position: 0% at the Farm & Heavy Construction Machinery median (#105 of 211)
No single metric tells the full story. See the BOM:500477 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
88GF Score
Get the complete analysis for BOM:500477
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:500477 has been successfully added to your 
