Ambika Cotton Mills (BOM:531978) Quick Ratio: 2.32 (As of Mar. 2026) — 50% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:531978 Ambika Cotton Mills Ltd BOM:531978
74 GF Score
Price ₹1,726.05
GF Value ₹1,560.05
Valuation Modestly Overvalued
! 8 Warning Signs
View Full Analysis

What is Ambika Cotton Mills Quick Ratio?

Ambika Cotton Mills BOM:531978 -0.33% 74 Quick Ratio is 2.32 as of Mar. 2026, which is 50% above its 10-year median of 1.55. GuruFocus rates BOM:531978 with a GF Score™ of 74/100 and a GF Value™ of ₹1,560.05 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,063 Manufacturing - Apparel & Accessories companies, Ambika Cotton Mills ranks better than 78.83% on this metric.

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. Ambika Cotton Mills's quick ratio for the quarter that ended in Mar. 2026 was 2.32.

Ambika Cotton Mills has a quick ratio of 2.32. It generally indicates good short-term financial strength.

The historical rank and industry rank for Ambika Cotton Mills's Quick Ratio or its related term are showing as below:

BOM:531978' s Quick Ratio Range Over the Past 10 Years
Min: 0.63   Med: 1.55   Max: 5.02
Current: 2.32

During the past 13 years, Ambika Cotton Mills's highest Quick Ratio was 5.02. The lowest was 0.63. And the median was 1.55.

BOM:531978's Quick Ratio is ranked better than
78.83% of 1063 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.11 vs BOM:531978: 2.32

Ambika Cotton Mills  (BOM:531978) 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.


Ambika Cotton Mills Quick Ratio Related Terms


Ambika Cotton Mills Quick Ratio Historical Data

* Premium members only.

The historical data trend for Ambika Cotton Mills'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.

Ambika Cotton Mills Quick Ratio Chart

Ambika Cotton Mills Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.02 2.63 1.62 1.52 2.32

Ambika Cotton Mills Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.52 0.00 1.91 0.00 2.32

Ambika Cotton Mills Quick Ratio Competitor Comparison

For the Textile Manufacturing subindustry, Ambika Cotton Mills'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.


Ambika Cotton Mills Quick Ratio vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ambika Cotton Mills's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Ambika Cotton Mills's Quick Ratio falls into.


BOM:531978
74GF Score
Ambika Cotton Mills Ltd BOM:531978
Quick Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ambika Cotton Mills 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.

Ambika Cotton Mills's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as

Quick Ratio (A: Mar. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7993.9-5185.9)/1210.1
=2.32

Ambika Cotton Mills's Quick Ratio for the quarter that ended in Mar. 2026 is calculated as

Quick Ratio (Q: Mar. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7993.9-5185.9)/1210.1
=2.32

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 2.32 mean?
Ambika Cotton Mills (BOM:531978) has a Quick Ratio of 2.32 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Ambika Cotton Mills and its competitors. This is 50% above median its historical median of 1.55. Over the past decade, Ambika Cotton Mills' Quick Ratio has ranged from 0.63 to 5.02. According to the industry distribution chart, Ambika Cotton Mills ranks #225 out of 1063 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 21.2%.
Is Ambika Cotton Mills' Quick Ratio too high?
Ambika Cotton Mills' current Quick Ratio of 2.32 is 50% above median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 5.02. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.11. Ambika Cotton Mills' value of 2.32 is 109% above this industry median. Based on the distribution chart, Ambika Cotton Mills ranks #225 out of 1063 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Ambika Cotton Mills has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ambika Cotton Mills' Quick Ratio compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ambika Cotton Mills ranks #225 out of 1063 companies for Quick Ratio. This places Ambika Cotton Mills in the top 21% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.11. Ambika Cotton Mills' value of 2.32 is 109% above this benchmark. Historically, Ambika Cotton Mills' own Quick Ratio has ranged from 0.63 to 5.02 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 1.11, Ambika Cotton Mills has consistently been above the industry average. 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 Manufacturing - Apparel & Accessories company?
The median Quick Ratio among Manufacturing - Apparel & Accessories companies is 1.11, based on 1,063 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. Ambika Cotton Mills's current Quick Ratio of 2.32 is 109% 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 Ambika Cotton Mills and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambika Cotton Mills's current Quick Ratio is 2.32, which is 50% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambika Cotton Mills stock overvalued right now?
Based on GuruFocus' analysis, Ambika Cotton Mills (BOM:531978) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,560.05, compared to a current price of ₹1,726.05 — trading 10.6% above its estimated fair value. The current Quick Ratio is 2.32, which is 50% above median its 10-year median of 1.55 and 109% above the Manufacturing - Apparel & Accessories industry median of 1.11. Ambika Cotton Mills' overall GF Score™ is 74/100 with 8 warning signs to review. 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 Ambika Cotton Mills (BOM:531978), the current Quick Ratio is 2.32 as of Mar. 2026. 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.

Is Ambika Cotton Mills (BOM:531978) Overvalued in 2026?

Based on GuruFocus' analysis, Ambika Cotton Mills stock appears to be overvalued. The current stock price of ₹1,726.05 is trading 10.6% above its estimated GF Value™ of ₹1,560.05. GuruFocus considers Ambika Cotton Mills to be Modestly Overvalued.

Key valuation signals for BOM:531978:

  • Quick Ratio: 2.32 (50% above median its 10-year median of 1.55)
  • GF Value™: ₹1,560.05 vs. price of ₹1,726.05 (10.6% above fair value)
  • GF Score™: 74/100 with 8 warning signs
  • Industry Position: 109% above the Manufacturing - Apparel & Accessories median (#225 of 1063)

No single metric tells the full story. See the BOM:531978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ambika Cotton Mills Business Description

Other Exchanges AMBIKCO:India
Address No. 9A, 15, Valluvar Street, Sivanandha Colony, Coimbatore, TN, IND, 641012
Ambika Cotton Mills Ltd engages in the manufacture of cotton yarns for hosiery and weaving. The Textiles produces compact cotton; hard and soft twist; cylindrical dye cone; and s and z twist yarns. The Windmills generate power from windmills. Geographically, the company generates revenue from Europe, Asia, North America, Africa, and India. The company generates majority of its revenue from Asia.
74GF Score

Get the complete analysis for BOM:531978

Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,726.05
Price
₹1,560.05
GF Value