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. Atam Valves's quick ratio for the quarter that ended in Mar. 2024 was 1.42.
Atam Valves has a quick ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Atam Valves's Quick Ratio or its related term are showing as below:
BOM:543236'
s Quick Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.24 Max: 1.72
Current: 1.42
During the past 7 years, Atam Valves's highest Quick Ratio was 1.72. The lowest was 0.73. And the median was 1.24.
BOM:543236's Quick Ratio is ranked better than 50.89% of 3032
companies
in the Industrial Products industry
Industry Median: 1.4
vs BOM:543236: 1.42
Atam Valves Quick Ratio Historical Data
The historical data trend for Atam Valves'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 Atam Valves's Quick Ratio
For the Specialty Industrial Machinery subindustry, Atam Valves'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.
Atam Valves's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Atam Valves's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Atam Valves's Quick Ratio falls into.
Atam Valves 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.
Atam Valves'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.
Atam Valves (BOM:543236) 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.
Atam Valves Quick Ratio Related Terms
Thank you for viewing the detailed overview of Atam Valves's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Atam Valves Ltd is engaged in the business of manufacturing bronze, cast iron, cast steel, carbon steel, stainless steel, forged steel as well as gun metal industrial valves of various types and sizes ranging from 8 mm up to 350 mm. It manufactures boiler mountings and supplies various types of valves and fittings, steam traps, and strainers. The company's products range includes Air Valves; Ball Valves; Butterfly Valves; Check Valves; Cocks; Foot Valves; Gate Valves; Globe Valves; Injectors; Moisture Separators; Needle Valves; Non Return Valves; Parallel Slide Blow Off Valves; Plug Valves; Pressure Reducing Valves; Safety Valves; Sight Indicators; Steam Stop Valves; Steam Traps; Strainers; Water Level Gauges; and Wheel Valves.
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