Shah Construction Co has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Shah Construction Co's Quick Ratio or its related term are showing as below:
BOM:509870'
s Quick Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.03 Max: 0.05
Current: 0.01
During the past 8 years, Shah Construction Co's highest Quick Ratio was 0.05. The lowest was 0.01. And the median was 0.03.
BOM:509870's Quick Ratio is not ranked
in the Construction industry.
Industry Median: 1.28
vs BOM:509870: 0.01
Shah Construction Co Quick Ratio Historical Data
The historical data trend for Shah Construction Co'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 Shah Construction Co's Quick Ratio
For the Engineering & Construction subindustry, Shah Construction Co'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.
Shah Construction Co's Quick Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Shah Construction Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Shah Construction Co's Quick Ratio falls into.
Shah Construction Co 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.
Shah Construction Co's Quick Ratio for the fiscal year that ended in Mar. 2023 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.
Shah Construction Co (BOM:509870) 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.
Shah Construction Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Shah Construction Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Shah Construction Co (BOM:509870) Business Description
Shah Construction Co Ltd is engaged in the development of land and construction of buildings as builders and developers. The company undertakes complete or partial erections and construction of buildings and works of all descriptions including electric works, water works, road building, drainage, and sewage work. It also undertakes machining, timber, and wood-work for building and constructional work of all descriptions, for a house office or shop fittings, and fittings of all kinds, for mouldings, casings, capping, and other appliances, for electric and other cables, and for sundry parts and appliances for cotton, silk, wooden and other mills, and for cotton, fiber, and other presses.
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