* 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 Indian Wood Products Co's Quick Ratio
For the Lumber & Wood Production subindustry, Indian Wood Products 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.
Indian Wood Products Co's Quick Ratio Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Indian Wood Products Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Indian Wood Products Co's Quick Ratio falls into.
Indian Wood Products Co 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.
Indian Wood Products Co's Quick Ratio for the fiscal year that ended in Mar. 2023 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.
Indian Wood Products Co (BOM:540954) 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.
Indian Wood Products Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Indian Wood Products Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Indian Wood Products Co (BOM:540954) Business Description
Indian Wood Products Co Ltd is engaged in the production, processing, and marketing of Katha and Cutch. The company's products are used as a mouth freshener, medical, and dyeing agent for natural fibers, and are also useful for the treatment of Acute viral hepatitis, and as Anti-diabetic, Anti-inflammatory, Anti-Diarrhoea, Anti-dysentery, Chemo-prevention, and others. It is also traditionally used for the treatment of Gums and Tooth and skin ailments. The company derives a majority of its revenue from the sales of Katha. The group principally operates in India.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:540954 has been successfully added to your 