Maruti Suzuki India has a quick ratio of 0.74. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Maruti Suzuki India's Quick Ratio or its related term are showing as below:
BOM:532500'
s Quick Ratio Range Over the Past 10 Years
Min: 0.31 Med: 0.55 Max: 0.93
Current: 0.74
During the past 13 years, Maruti Suzuki India's highest Quick Ratio was 0.93. The lowest was 0.31. And the median was 0.55.
BOM:532500's Quick Ratio is ranked worse than 70.13% of 1319
companies
in the Vehicles & Parts industry
Industry Median: 1.03
vs BOM:532500: 0.74
Maruti Suzuki India Quick Ratio Historical Data
The historical data trend for Maruti Suzuki India'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 Maruti Suzuki India's Quick Ratio
For the Auto Manufacturers subindustry, Maruti Suzuki India'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.
Maruti Suzuki India's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Maruti Suzuki India's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Maruti Suzuki India'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.
Maruti Suzuki India's Quick Ratio for the fiscal year that ended in Mar. 2025 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.
Maruti Suzuki India (BOM:532500) 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.
Maruti Suzuki India Quick Ratio Related Terms
Thank you for viewing the detailed overview of Maruti Suzuki India's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Maruti Suzuki India Ltd, a subsidiary of Suzuki Motor Corp. The company is engaged in the manufacturing, purchase, and sale of motor vehicles, components, and spare parts. Its other activities include the facilitation of pre-owned car sales, fleet management, and car financing. The company manufactures various types of passenger vehicles and light commercial vehicles for its customers belonging to different income categories. Some of the vehicles manufactured by it are; WagonR, Dzire, Ertiga, Fronx (SUV), and others. Geographically, the company generates a majority of its revenue from its business in India and also engages in exports of its products to countries like Chile, Saudi Arabia, South Africa, Mexico, and the Philippines.
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