Orissa Sponge Iron & Steel has a quick ratio of 0.23. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Orissa Sponge Iron & Steel's Quick Ratio or its related term are showing as below:
BOM:504864'
s Quick Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.06 Max: 0.37
Current: 0.23
During the past 13 years, Orissa Sponge Iron & Steel's highest Quick Ratio was 0.37. The lowest was 0.02. And the median was 0.06.
BOM:504864's Quick Ratio is not ranked
in the Steel industry.
Industry Median: 1.02
vs BOM:504864: 0.23
Orissa Sponge Iron & Steel (BOM:504864) 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.
Orissa Sponge Iron & Steel Quick Ratio Related Terms
Orissa Sponge Iron & Steel Quick Ratio Historical Data
* 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.
For the Steel subindustry, Orissa Sponge Iron & Steel'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.
Orissa Sponge Iron & Steel Quick Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Orissa Sponge Iron & Steel's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Orissa Sponge Iron & Steel's Quick Ratio falls into.
Orissa Sponge Iron & Steel 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.
* 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.
Orissa Sponge Iron & Steel (BOM:504864) has a Quick Ratio of 0.23 as of Mar. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Orissa Sponge Iron & Steel and its competitors. This is 283% above median its historical median of 0.06. Over the past decade, Orissa Sponge Iron & Steel's Quick Ratio has ranged from 0.02 to 0.37.
Is Orissa Sponge Iron & Steel's Quick Ratio too high?
Orissa Sponge Iron & Steel's current Quick Ratio of 0.23 is 283% above median its 10-year median of 0.06. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 0.37. The Steel industry median Quick Ratio is 1.02. Orissa Sponge Iron & Steel's value of 0.23 is 77.5% below this industry median.
How does Orissa Sponge Iron & Steel's Quick Ratio compare to NUE?
Orissa Sponge Iron & Steel's Quick Ratio of 0.23 can be compared against companies in the Steel industry. The industry median Quick Ratio is 1.02. Orissa Sponge Iron & Steel's value of 0.23 is 77.5% below this benchmark. Historically, Orissa Sponge Iron & Steel's own Quick Ratio has ranged from 0.02 to 0.37 over the past decade. While the company's 10-year median is 0.06 vs. the industry median of 1.02, Orissa Sponge Iron & Steel has consistently been below 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 Steel company?
The median Quick Ratio among Steel companies is 1.02, based on 634 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. Orissa Sponge Iron & Steel's current Quick Ratio of 0.23 is 77.5% below 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 Orissa Sponge Iron & Steel and its competitors. For the Steel industry, the median Quick Ratio is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orissa Sponge Iron & Steel's current Quick Ratio is 0.23, which is 283% above median its own 10-year median of 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orissa Sponge Iron & Steel stock overvalued right now?
Orissa Sponge Iron & Steel (BOM:504864) has a current Quick Ratio of 0.23. The current Quick Ratio is 0.23, which is 283% above median its 10-year median of 0.06 and 77.5% below the Steel industry median of 1.02. 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 Orissa Sponge Iron & Steel (BOM:504864), the current Quick Ratio is 0.23 as of Mar. 2025. 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.
Orissa Sponge Iron & Steel Ltd is engaged in manufacturing and selling iron and steel. It mainly operates coal-based sponge iron plants, waste energy recovery-based power plants, and a billet-making plant. The Company's business activities falls within a single primary business segment which is Iron & Steel. The firm generates revenues through the sale of surplus power, and also involves in providing engineering and technical services. It operates a coal-based sponge iron plant, waste energy recovery-based power plants, and a billet-making plant.
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