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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. Rainbow Denim's quick ratio for the quarter that ended in Mar. 2026 was 0.49.
Rainbow Denim has a quick ratio of 0.49. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Rainbow Denim's Quick Ratio or its related term are showing as below:
BOM:532441'
s Quick Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.31 Max: 1.19
Current: 0.49
During the past 13 years, Rainbow Denim's highest Quick Ratio was 1.19. The lowest was 0.02. And the median was 0.31.
Rainbow Denim (BOM:532441) 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.
Rainbow Denim Quick Ratio Related Terms
Rainbow Denim Quick Ratio Historical Data
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The historical data trend for Rainbow Denim'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 Textile Manufacturing subindustry, Rainbow Denim'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.
Rainbow Denim Quick Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rainbow Denim's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rainbow Denim'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.
Rainbow Denim's Quick Ratio for the fiscal year that ended in Mar. 2026 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.
Rainbow Denim (BOM:532441) has a Quick Ratio of 0.49 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Rainbow Denim and its competitors. This is 58% above median its historical median of 0.31. Over the past decade, Rainbow Denim's Quick Ratio has ranged from 0.02 to 1.19.
Is Rainbow Denim's Quick Ratio too high?
Rainbow Denim's current Quick Ratio of 0.49 is 58% above median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 1.19. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.11. Rainbow Denim's value of 0.49 is 55.9% below this industry median. Overall, Rainbow Denim has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Denim's Quick Ratio compare to AIN?
Rainbow Denim's Quick Ratio of 0.49 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Quick Ratio is 1.11. Rainbow Denim's value of 0.49 is 55.9% below this benchmark. Historically, Rainbow Denim's own Quick Ratio has ranged from 0.02 to 1.19 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 1.11, Rainbow Denim has consistently been below 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 1,066 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. Rainbow Denim's current Quick Ratio of 0.49 is 55.9% below 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 Rainbow Denim 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. Rainbow Denim's current Quick Ratio is 0.49, which is 58% above median its own 10-year median of 0.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Denim stock overvalued right now?
Rainbow Denim (BOM:532441) has a current Quick Ratio of 0.49. The current Quick Ratio is 0.49, which is 58% above median its 10-year median of 0.31 and 55.9% below the Manufacturing - Apparel & Accessories industry median of 1.11. Rainbow Denim's overall GF Score™ is 4/100 with 6 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 Rainbow Denim (BOM:532441), the current Quick Ratio is 0.49 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.
Rainbow Denim Ltd is an Indian firm operating in the textile industry. It is principally engaged in the single segment of manufacturing and distribution of denim fabric. Its product range consists of crosshatch denim, slubby denim, structured (dobby) denim, polyester filament weft denim, multi-count denim fabrics, doubled yarn warp denim, and silky denim and others.
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