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. Bharat Bijlee's quick ratio for the quarter that ended in Mar. 2024 was 1.16.
Bharat Bijlee has a quick ratio of 1.16. It generally indicates good short-term financial strength.
The historical rank and industry rank for Bharat Bijlee's Quick Ratio or its related term are showing as below:
BOM:503960'
s Quick Ratio Range Over the Past 10 Years
Min: 0.79 Med: 1.15 Max: 1.34
Current: 1.16
During the past 13 years, Bharat Bijlee's highest Quick Ratio was 1.34. The lowest was 0.79. And the median was 1.15.
BOM:503960's Quick Ratio is ranked worse than 60.64% of 3044
companies
in the Industrial Products industry
Industry Median: 1.38
vs BOM:503960: 1.16
Bharat Bijlee Quick Ratio Historical Data
The historical data trend for Bharat Bijlee'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 Bharat Bijlee's Quick Ratio
For the Electrical Equipment & Parts subindustry, Bharat Bijlee'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.
Bharat Bijlee's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Bharat Bijlee's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Bharat Bijlee's Quick Ratio falls into.
Bharat Bijlee 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.
Bharat Bijlee'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.
Bharat Bijlee (BOM:503960) 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.
Bharat Bijlee Quick Ratio Related Terms
Thank you for viewing the detailed overview of Bharat Bijlee's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bharat Bijlee Ltd offers electric motors and transformers. The company's operating segment includes Power Systems and Industrial Systems. The Power Systems segment comprises the design, commissioning, and marketing of power transformers; EPC projects for electrical substations including delivery, rectification, commissioning, and servicing of transformers and marketing of maintenance products. The Industrial systems segment generates the majority of revenue, and it comprises the development, marketing, and manufacture of a wide range of standard and customized electric motors; magnet technology machines, and the engineering and supply of Drives and Automation systems. Geographically it has a presence in India and Outside India, of which a majority of revenue is derived from India.
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