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Prabhu Steel Industries (BOM:506042) 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.
Prabhu Steel Industries Quick Ratio Related Terms
Prabhu Steel Industries 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.
Prabhu Steel Industries Quick Ratio Chart
Prabhu Steel Industries Annual Data
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Prabhu Steel Industries Quarterly Data
Quick Ratio
Prabhu Steel Industries Quick Ratio Competitor Comparison
For the Steel subindustry, Prabhu Steel Industries'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.
Prabhu Steel Industries Quick Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Prabhu Steel Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Prabhu Steel Industries'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.
Prabhu Steel Industries's Quick Ratio for the fiscal year that ended in . 20 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.
Prabhu Steel Industries (BOM:506042) has a Quick Ratio of 0.00 as of . 20. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Prabhu Steel Industries and its competitors.
Is Prabhu Steel Industries' Quick Ratio too high?
Prabhu Steel Industries' current Quick Ratio is 0.00.
How does Prabhu Steel Industries' Quick Ratio compare to competitors?
Prabhu Steel Industries' Quick Ratio of 0.00 can be compared against companies in the Steel industry. The industry median Quick Ratio is 1.00. 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 1.00, based on 633 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 Prabhu Steel Industries and its competitors. For the Steel industry, the median Quick Ratio is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prabhu Steel Industries'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 Prabhu Steel Industries stock overvalued right now?
Prabhu Steel Industries (BOM:506042) has a current Quick Ratio of 0.00. The current Quick Ratio is 0.00. 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 Prabhu Steel Industries (BOM:506042), the current Quick Ratio is 0.00 as of . 20. 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.
Prabhu Steel Industries Ltd is an Indian company mainly engaged in the business of selling and distributing, and trading iron and steel. It offers flat steel products, steel tubes and pipes, rods, alloys, and stainless steel products, which have applications in automotive, construction, consumer goods, oil and gas, aerospace, defense, and other industries. Geographically, the company generates all of its revenue from its domestic market.
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