Simplex Mills Co (BOM:533018) 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.
Simplex Mills Co Quick Ratio Related Terms
Simplex Mills Co Quick Ratio Historical Data
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The historical data trend for Simplex Mills Co'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.
Simplex Mills Co Quick Ratio Competitor Comparison
For the Textile Manufacturing subindustry, Simplex Mills Co'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.
Simplex Mills Co Quick Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Simplex Mills Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Simplex Mills Co'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.
Simplex Mills Co'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.
Simplex Mills Co (BOM:533018) has a Quick Ratio of 2.12 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Simplex Mills Co and its competitors. This is 123% above median its historical median of 0.95. Over the past decade, Simplex Mills Co's Quick Ratio has ranged from 0.10 to 2.12.
Is Simplex Mills Co's Quick Ratio too high?
Simplex Mills Co's current Quick Ratio of 2.12 is 123% above median its 10-year median of 0.95. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 2.12. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.12. Simplex Mills Co's value of 2.12 is 90.1% above this industry median. Overall, Simplex Mills Co has a GF Score™ of 3/100, reflecting its overall financial health beyond just this single metric.
How does Simplex Mills Co's Quick Ratio compare to competitors?
Simplex Mills Co's Quick Ratio of 2.12 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Quick Ratio is 1.12. Simplex Mills Co's value of 2.12 is 90.1% above this benchmark. Historically, Simplex Mills Co's own Quick Ratio has ranged from 0.10 to 2.12 over the past decade. While the company's 10-year median is 0.95 vs. the industry median of 1.12, Simplex Mills Co 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 1.12, based on 1,062 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. Simplex Mills Co's current Quick Ratio of 2.12 is 90.1% 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 Simplex Mills Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simplex Mills Co's current Quick Ratio is 2.12, which is 123% above median its own 10-year median of 0.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simplex Mills Co stock overvalued right now?
Simplex Mills Co (BOM:533018) has a current Quick Ratio of 2.12. The stock's GF Value™ is ₹5,664.24, compared to a current price of ₹5,415.00 — trading 4.4% below its estimated fair value. The current Quick Ratio is 2.12, which is 123% above median its 10-year median of 0.95 and 90.1% above the Manufacturing - Apparel & Accessories industry median of 1.12. Simplex Mills Co's overall GF Score™ is 3/100 with 5 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 Simplex Mills Co (BOM:533018), the current Quick Ratio is 2.12 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 Simplex Mills Co (BOM:533018) Overvalued in 2026?
Based on GuruFocus' analysis, Simplex Mills Co stock appears to be undervalued.
The current stock price of ₹5,415.00 is trading 4.4% below its estimated GF Value™ of ₹5,664.24.
Key valuation signals for BOM:533018:
Quick Ratio: 2.12 (123% above median its 10-year median of 0.95)
GF Value™: ₹5,664.24 vs. price of ₹5,415.00 (4.4% below fair value)
Industry Position: 90.1% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the BOM:533018 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simplex Mills Co Ltd is engaged in the trading of textile products such as clothes and fabrics. Geographically, the company operates only in India. The company generates a majority of its revenue from the sale of Traded goods.
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