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. Vani Commercials's quick ratio for the quarter that ended in Mar. 2024 was 235.05.
Vani Commercials has a quick ratio of 235.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for Vani Commercials's Quick Ratio or its related term are showing as below:
BOM:538918'
s Quick Ratio Range Over the Past 10 Years
Min: 2.85 Med: 77.09 Max: 39256.5
Current: 235.05
During the past 11 years, Vani Commercials's highest Quick Ratio was 39256.50. The lowest was 2.85. And the median was 77.09.
BOM:538918's Quick Ratio is ranked better than 88.03% of 376
companies
in the Credit Services industry
Industry Median: 4.08
vs BOM:538918: 235.05
Vani Commercials Quick Ratio Historical Data
The historical data trend for Vani Commercials'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 Vani Commercials's Quick Ratio
For the Credit Services subindustry, Vani Commercials'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.
Vani Commercials's Quick Ratio Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Vani Commercials's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vani Commercials's Quick Ratio falls into.
Vani Commercials 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.
Vani Commercials's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Vani Commercials (BOM:538918) 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.
Vani Commercials Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vani Commercials's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vani Commercials (BOM:538918) Business Description
Vani Commercials Ltd is an India-based non-banking finance company. Its product includes loans for the purchase of equipment and machinery, working capital loans, loans for business or capacity expansion, term loans against property, loans for the purchase of commercial property, and lease rental discounting. The company offers its lending services to Micro, Small, and Medium Enterprises. It derives key revenue from the Interest income.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:538918 has been successfully added to your 