Kailash Auto Finance has a quick ratio of 120,066.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kailash Auto Finance's Quick Ratio or its related term are showing as below:
BOM:511357's Quick Ratio is not ranked *
in the Credit Services industry.
Industry Median: 4.855 * Ranked among companies with meaningful Quick Ratio only.
Kailash Auto Finance (BOM:511357) 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.
Kailash Auto Finance Quick Ratio Related Terms
Kailash Auto Finance Quick Ratio Historical Data
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The historical data trend for Kailash Auto Finance'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.
For the Credit Services subindustry, Kailash Auto Finance'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.
Kailash Auto Finance Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Kailash Auto Finance's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kailash Auto Finance'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.
Kailash Auto Finance's Quick Ratio for the fiscal year that ended in Mar. 2019 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.
Kailash Auto Finance (BOM:511357) has a Quick Ratio of 120,066.00 as of Sep. 2020. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Kailash Auto Finance and its competitors.
Is Kailash Auto Finance's Quick Ratio too high?
Kailash Auto Finance's current Quick Ratio is 120,066.00. The Credit Services industry median Quick Ratio is 4.86. Kailash Auto Finance's value of 120,066.00 is 2472938.1% above this industry median.
How does Kailash Auto Finance's Quick Ratio compare to LMFA?
Kailash Auto Finance's Quick Ratio of 120,066.00 can be compared against companies in the Credit Services industry. The industry median Quick Ratio is 4.86. Kailash Auto Finance's value of 120,066.00 is 2472938.1% above this benchmark. 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 4.86, based on 394 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. Kailash Auto Finance's current Quick Ratio of 120,066.00 is 2472938.1% above 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 Kailash Auto Finance and its competitors. For the Credit Services industry, the median Quick Ratio is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kailash Auto Finance's current Quick Ratio is 120,066.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kailash Auto Finance stock overvalued right now?
Kailash Auto Finance (BOM:511357) has a current Quick Ratio of 120,066.00. The current Quick Ratio is 120,066.00 and 2472938.1% above the Credit Services industry median of 4.86. 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 Kailash Auto Finance (BOM:511357), the current Quick Ratio is 120,066.00 as of Sep. 2020. 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.
Kailash Auto Finance Ltd is an India-based non-banking finance company. The company is primarily focused in providing inter-corporate loans, personal loans, loans against shares and securities, loans against properties, trade financing, bills discounting, trading in shares and securities and arbitrage business in the stock market and trading in shares and securities. It generates maximum revenue from Interest Income.
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