Egyptian Chemical Industries (CAI:EGCH) Quick Ratio: 12.87 (As of Jun. 2015)


What is Egyptian Chemical Industries Quick Ratio?

Egyptian Chemical Industries CAI:EGCH +2.92% Quick Ratio is 12.87 as of Jun. 2015.

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. Egyptian Chemical Industries's quick ratio for the quarter that ended in Jun. 2015 was 12.87.

Egyptian Chemical Industries has a quick ratio of 12.87. It generally indicates good short-term financial strength.

The historical rank and industry rank for Egyptian Chemical Industries's Quick Ratio or its related term are showing as below:

CAI:EGCH's Quick Ratio is not ranked *
in the Chemicals industry.
Industry Median: 1.38
* Ranked among companies with meaningful Quick Ratio only.

Egyptian Chemical Industries  (CAI:EGCH) 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.

Egyptian Chemical Industries Quick Ratio Related Terms

Egyptian Chemical Industries Quick Ratio Historical Data

* Premium members only.

The historical data trend for Egyptian Chemical Industries'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.

Egyptian Chemical Industries Quick Ratio Chart

Egyptian Chemical Industries Annual Data
Trend Dec11 Dec12
Quick Ratio
0.00 10.15

Egyptian Chemical Industries Semi-Annual Data
Dec12 Jun14 Jun15
Quick Ratio 10.15 0.00 12.87

Egyptian Chemical Industries Quick Ratio Competitor Comparison

For the Chemicals subindustry, Egyptian Chemical Industries'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.

Egyptian Chemical Industries Quick Ratio vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Egyptian Chemical Industries's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Egyptian Chemical Industries's Quick Ratio falls into.


Egyptian Chemical Industries 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.

Egyptian Chemical Industries's Quick Ratio for the fiscal year that ended in Dec. 2012 is calculated as

Quick Ratio (A: Dec. 2012 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1568.156-0)/154.513
=10.15

Egyptian Chemical Industries's Quick Ratio for the quarter that ended in Jun. 2015 is calculated as

Quick Ratio (Q: Jun. 2015 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1933.756-0)/150.21
=12.87

* 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 12.87 mean?
Egyptian Chemical Industries (CAI:EGCH) has a Quick Ratio of 12.87 as of Jun. 2015. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Egyptian Chemical Industries and its competitors.
Is Egyptian Chemical Industries' Quick Ratio too high?
Egyptian Chemical Industries' current Quick Ratio is 12.87. The Chemicals industry median Quick Ratio is 1.38. Egyptian Chemical Industries' value of 12.87 is 832.6% above this industry median.
How does Egyptian Chemical Industries' Quick Ratio compare to competitors?
Egyptian Chemical Industries' Quick Ratio of 12.87 can be compared against companies in the Chemicals industry. The industry median Quick Ratio is 1.38. Egyptian Chemical Industries' value of 12.87 is 832.6% 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 Chemicals company?
The median Quick Ratio among Chemicals companies is 1.38, based on 1,604 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. Egyptian Chemical Industries's current Quick Ratio of 12.87 is 832.6% 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 Egyptian Chemical Industries and its competitors. For the Chemicals industry, the median Quick Ratio is 1.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Egyptian Chemical Industries's current Quick Ratio is 12.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Egyptian Chemical Industries stock overvalued right now?
Egyptian Chemical Industries (CAI:EGCH) has a current Quick Ratio of 12.87. The current Quick Ratio is 12.87 and 832.6% above the Chemicals industry median of 1.38. 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 Egyptian Chemical Industries (CAI:EGCH), the current Quick Ratio is 12.87 as of Jun. 2015. 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.

Egyptian Chemical Industries Business Description

Address Aswan-Elsaad ELaaly Road, Aswan, EGY
Egyptian Chemical Industries manufactures various chemicals. The company's product portfolio comprises of Ammonium nitrate, Ferro-Silicon alloy, liquid Ammonium Nitrate, oxygen gas, Nitric Acid, Hydrochloric Acid, Silica fume, and Aqua- Ammonia.