Pitti Engineering has a quick ratio of 0.77. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Pitti Engineering's Quick Ratio or its related term are showing as below:
BOM:513519'
s Quick Ratio Range Over the Past 10 Years
Min: 0.51 Med: 0.67 Max: 0.77
Current: 0.77
During the past 13 years, Pitti Engineering's highest Quick Ratio was 0.77. The lowest was 0.51. And the median was 0.67.
BOM:513519's Quick Ratio is ranked worse than 82.3% of 3029
companies
in the Industrial Products industry
Industry Median: 1.4
vs BOM:513519: 0.77
Pitti Engineering Quick Ratio Historical Data
The historical data trend for Pitti Engineering'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 Pitti Engineering's Quick Ratio
For the Metal Fabrication subindustry, Pitti Engineering'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.
Pitti Engineering's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Pitti Engineering's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Pitti Engineering's Quick Ratio falls into.
Pitti Engineering 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.
Pitti Engineering'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.
Pitti Engineering (BOM:513519) 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.
Pitti Engineering Quick Ratio Related Terms
Thank you for viewing the detailed overview of Pitti Engineering's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Pitti Engineering (BOM:513519) Business Description
Pitti Engineering Ltd is a company engaged in the manufacture of special-purpose laminations of all types of rotating electrical machinery. It is also into manufacturing electrical steel laminations, motor cores, sub-assemblies, die-cast rotors, and press tools. The company's products have applications in industrial motors, alternators, hydroelectric and thermal power generators, wind power generators, DC machines, railway traction motors, pumps, medical diagnostic equipment, and aeronautic wing control motors. It sells its products both in domestic and international markets and generates maximum revenue from India.
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