The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Zenith Fibres's quick ratio for the quarter that ended in Mar. 2024 was 13.94.
Zenith Fibres has a quick ratio of 13.94. It generally indicates good short-term financial strength.
The historical rank and industry rank for Zenith Fibres's Quick Ratio or its related term are showing as below:
BOM:514266'
s Quick Ratio Range Over the Past 10 Years
Min: 7.47 Med: 15.66 Max: 26.75
Current: 13.94
During the past 13 years, Zenith Fibres's highest Quick Ratio was 26.75. The lowest was 7.47. And the median was 15.66.
BOM:514266's Quick Ratio is ranked better than 96.58% of 1081
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.06
vs BOM:514266: 13.94
Zenith Fibres Quick Ratio Historical Data
The historical data trend for Zenith Fibres'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 Zenith Fibres's Quick Ratio
For the Textile Manufacturing subindustry, Zenith Fibres'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.
Zenith Fibres's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Zenith Fibres's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Zenith Fibres's Quick Ratio falls into.
Zenith Fibres 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.
Zenith Fibres'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.
Zenith Fibres (BOM:514266) 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.
Zenith Fibres Quick Ratio Related Terms
Thank you for viewing the detailed overview of Zenith Fibres's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Zenith Fibres Ltd is an Indian based company engaged in the manufacturing of man-made fibers such as polypropylene staple fiber. The polypropylene fiber product is used in a wide variety of areas; some of these include spun yarn filter fabrics, non-woven filter fabrics, geo-textiles, floor coverings and carpet backings, furnishing fabrics, blankets, wall-coverings, in the construction industry. Its segment includes Manmade Fibre and Wind Mill. The company generates maximum revenue from the Manmade Fibre segment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:514266 has been successfully added to your 