Salem Erode Investments (BOM:540181) Quick Ratio: 9.41 (As of Mar. 2026) — 16% Below Median

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BOM:540181 Salem Erode Investments Ltd BOM:540181
52 GF Score
Price ₹37.88
GF Value ₹37.08
Valuation Fairly Valued
! 5 Warning Signs
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What is Salem Erode Investments Quick Ratio?

Salem Erode Investments BOM:540181 52 Quick Ratio is 9.41 as of Mar. 2026, which is 16% below its 10-year median of 11.22. GuruFocus rates BOM:540181 with a GF Score™ of 52/100 and a GF Value™ of ₹37.08 (Fairly Valued). The stock has 5 warning signs investors should review. Among 396 Credit Services companies, Salem Erode Investments ranks better than 55.81% on this metric.

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. Salem Erode Investments's quick ratio for the quarter that ended in Mar. 2026 was 9.41.

Salem Erode Investments has a quick ratio of 9.41. It generally indicates good short-term financial strength.

The historical rank and industry rank for Salem Erode Investments's Quick Ratio or its related term are showing as below:

BOM:540181' s Quick Ratio Range Over the Past 10 Years
Min: 3.44   Med: 11.22   Max: 76.3
Current: 9.41

During the past 13 years, Salem Erode Investments's highest Quick Ratio was 76.30. The lowest was 3.44. And the median was 11.22.

BOM:540181's Quick Ratio is ranked better than
55.81% of 396 companies
in the Credit Services industry
Industry Median: 4.27 vs BOM:540181: 9.41

Salem Erode Investments  (BOM:540181) 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.


Salem Erode Investments Quick Ratio Related Terms


Salem Erode Investments Quick Ratio Historical Data

* Premium members only.

The historical data trend for Salem Erode 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.

Salem Erode Investments Quick Ratio Chart

Salem Erode Investments Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.02 4.47 3.44 6.12 9.41

Salem Erode Investments Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.12 0.00 97.35 0.00 9.41

BOM:540181 vs V, MA, AXP: Quick Ratio Comparison

For the Credit Services subindustry, Salem Erode 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.


Salem Erode Investments Quick Ratio vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Salem Erode Investments's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Salem Erode Investments's Quick Ratio falls into.


BOM:540181
52GF Score
Salem Erode Investments Ltd BOM:540181
Quick Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Salem Erode Investments 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.

Salem Erode Investments's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as

Quick Ratio (A: Mar. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(218-0)/23.159
=9.41

Salem Erode Investments's Quick Ratio for the quarter that ended in Mar. 2026 is calculated as

Quick Ratio (Q: Mar. 2026 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(218-0)/23.159
=9.41

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 9.41 mean?
Salem Erode Investments (BOM:540181) has a Quick Ratio of 9.41 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Salem Erode Investments and its competitors. This is 16% below median its historical median of 11.22. Over the past decade, Salem Erode Investments' Quick Ratio has ranged from 3.44 to 76.30. According to the industry distribution chart, Salem Erode Investments ranks #175 out of 396 companies in the Credit Services industry, placing it in the top 44.2%.
Is Salem Erode Investments' Quick Ratio too high?
Salem Erode Investments' current Quick Ratio of 9.41 is 16% below median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 3.44 to a high of 76.30. The Credit Services industry median Quick Ratio is 4.27. Salem Erode Investments' value of 9.41 is 120.4% above this industry median. Based on the distribution chart, Salem Erode Investments ranks #175 out of 396 companies in the Credit Services industry, which is above the industry midpoint. Overall, Salem Erode Investments has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Salem Erode Investments' Quick Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Salem Erode Investments ranks #175 out of 396 companies for Quick Ratio. This puts Salem Erode Investments in the upper half of its industry. The industry median Quick Ratio is 4.27. Salem Erode Investments' value of 9.41 is 120.4% above this benchmark. Historically, Salem Erode Investments' own Quick Ratio has ranged from 3.44 to 76.30 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 4.27, Salem Erode Investments 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 4.27, based on 396 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. Salem Erode Investments's current Quick Ratio of 9.41 is 120.4% 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 Salem Erode Investments and its competitors. For the Credit Services industry, the median Quick Ratio is 4.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salem Erode Investments's current Quick Ratio is 9.41, which is 16% below median its own 10-year median of 11.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salem Erode Investments stock overvalued right now?
Based on GuruFocus' analysis, Salem Erode Investments (BOM:540181) is currently considered Fairly Valued. The stock's GF Value™ is ₹37.08, compared to a current price of ₹37.88 — trading 2.2% above its estimated fair value. The current Quick Ratio is 9.41, which is 16% below median its 10-year median of 11.22 and 120.4% above the Credit Services industry median of 4.27. Salem Erode Investments' overall GF Score™ is 52/100 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 Salem Erode Investments (BOM:540181), the current Quick Ratio is 9.41 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 Salem Erode Investments (BOM:540181) Overvalued in 2026?

Based on GuruFocus' analysis, Salem Erode Investments stock appears to be overvalued. The current stock price of ₹37.88 is trading 2.2% above its estimated GF Value™ of ₹37.08. GuruFocus considers Salem Erode Investments to be Fairly Valued.

Key valuation signals for BOM:540181:

  • Quick Ratio: 9.41 (16% below median its 10-year median of 11.22)
  • GF Value™: ₹37.08 vs. price of ₹37.88 (2.2% above fair value)
  • GF Score™: 52/100 with 5 warning signs
  • Industry Position: 120.4% above the Credit Services median (#175 of 396)

No single metric tells the full story. See the BOM:540181 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Salem Erode Investments Business Description

Address Irinjalakuda Main Road, V. K. K. Building, Thrissur, KL, IND, 680121
Salem Erode Investments Ltd is engaged in the lending and investment business in India. It is a finance company that helps to secure the future financially and helps in the financial crisis. The company invests in listed and unlisted equity shares, debt instruments of companies in a wide range of industries, and mutual funds. It also lends money with or without security. The company generates revenue from interest income and dividends.
52GF Score

Get the complete analysis for BOM:540181

Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹37.88
Price
₹37.08
GF Value