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Achal Investments has a quick ratio of 32.64. It generally indicates good short-term financial strength.
The historical rank and industry rank for Achal Investments's Quick Ratio or its related term are showing as below:
BOM:538570's Quick Ratio is not ranked *
in the Credit Services industry.
Industry Median: 3.72 * Ranked among companies with meaningful Quick Ratio only.
Achal Investments (BOM:538570) 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.
Achal Investments Quick Ratio Related Terms
Achal Investments Quick Ratio Historical Data
* Premium members only.
The historical data trend for Achal Investments'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 Credit Services subindustry, Achal Investments'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.
Achal Investments Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Achal Investments's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Achal Investments'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.
Achal Investments's Quick Ratio for the fiscal year that ended in Mar. 2019 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.
Achal Investments (BOM:538570) has a Quick Ratio of 32.64 as of Sep. 2019. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Achal Investments and its competitors.
Is Achal Investments' Quick Ratio too high?
Achal Investments' current Quick Ratio is 32.64. The Credit Services industry median Quick Ratio is 3.72. Achal Investments' value of 32.64 is 777.4% above this industry median. Overall, Achal Investments has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Achal Investments' Quick Ratio compare to ARST?
Achal Investments' Quick Ratio of 32.64 can be compared against companies in the Credit Services industry. The industry median Quick Ratio is 3.72. Achal Investments' value of 32.64 is 777.4% above this benchmark. 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 3.72, based on 399 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. Achal Investments's current Quick Ratio of 32.64 is 777.4% 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 Achal Investments and its competitors. For the Credit Services industry, the median Quick Ratio is 3.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Achal Investments's current Quick Ratio is 32.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Achal Investments stock overvalued right now?
Achal Investments (BOM:538570) has a current Quick Ratio of 32.64. The current Quick Ratio is 32.64 and 777.4% above the Credit Services industry median of 3.72. Achal Investments' overall GF Score™ is 4/100. 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 Achal Investments (BOM:538570), the current Quick Ratio is 32.64 as of Sep. 2019. 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.
Achal Investments Ltd is engaged in providing term loan and working capital. The company is engaged in the business of financing, encouraging, promoting and assisting in the establishment and growth of industries and industrial undertakings. Achal Investments focuses on Small Finance and works with low-income families to provide financial solutions. It is also in the business of providing term loan and working capital support to traders and medium-sized enterprises.
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