CBMDF (CBM Asia Development) Quick Ratio: 0.80 (As of Sep. 2013)

What is CBM Asia Development Quick Ratio?

CBM Asia Development CBMDF -90.00% Quick Ratio is 0.80 as of Sep. 2013.

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. CBM Asia Development's quick ratio for the quarter that ended in Sep. 2013 was 0.80.

CBM Asia Development has a quick ratio of 0.80. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for CBM Asia Development's Quick Ratio or its related term are showing as below:

CBMDF's Quick Ratio is not ranked ^*
in the Oil & Gas industry.
Industry Median: 1.12
* Ranked among companies with meaningful Quick Ratio only.

CBM Asia Development (OTCPK:CBMDF) 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.

CBM Asia Development Quick Ratio Related Terms

CBM Asia Development Quick Ratio Historical Data

* Premium members only.

The historical data trend for CBM Asia Development'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.

CBM Asia Development Quick Ratio Chart

CBM Asia Development Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Quick Ratio

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5.31

14.56

1.74

1.42

3.25

CBM Asia Development Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Quick Ratio	Get a 7-Day Free Trial															16.36	3.25	1.66	0.67	0.80

CBMDF vs IFNY, EXNT: Quick Ratio Comparison

For the Oil & Gas E&P subindustry, CBM Asia Development'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.

CBM Asia Development Quick Ratio vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, CBM Asia Development's Quick Ratio distribution charts can be found below:

* The bar in red indicates where CBM Asia Development's Quick Ratio falls into.

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CBM Asia Development 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.

CBM Asia Development'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
	=	(3.336	-	0)	/	1.026
	=	3.25

CBM Asia Development's Quick Ratio for the quarter that ended in Sep. 2013 is calculated as

Quick Ratio (Q: Sep. 2013 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1.583	-	0)	/	1.975
	=	0.80

Frequently Asked Questions Learn more about Quick Ratio →

What does a Quick Ratio of 0.80 mean?

CBM Asia Development (CBMDF) has a Quick Ratio of 0.80 as of Sep. 2013. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on CBM Asia Development and its competitors.

Is CBM Asia Development's Quick Ratio too high?

CBM Asia Development's current Quick Ratio is 0.80. The Oil & Gas industry median Quick Ratio is 1.12. CBM Asia Development's value of 0.80 is 28.6% below this industry median.

How does CBM Asia Development's Quick Ratio compare to IFNY and EXNT?

CBM Asia Development's Quick Ratio of 0.80 can be compared against companies in the Oil & Gas industry. The industry median Quick Ratio is 1.12. CBM Asia Development's value of 0.80 is 28.6% below 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 an Oil & Gas company?

The median Quick Ratio among Oil & Gas companies is 1.12, based on 1,011 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. CBM Asia Development's current Quick Ratio of 0.80 is 28.6% below 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 CBM Asia Development and its competitors. For the Oil & Gas industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CBM Asia Development's current Quick Ratio is 0.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is CBM Asia Development stock overvalued right now?

CBM Asia Development (CBMDF) has a current Quick Ratio of 0.80. The current Quick Ratio is 0.80 and 28.6% below the Oil & Gas industry median of 1.12. 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 CBM Asia Development (CBMDF), the current Quick Ratio is 0.80 as of Sep. 2013. 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.

CBM Asia Development Business Description

Industry Energy Oil & Gas

Comparable Companies TSXV:RHC ASX:BNL TSXV:CDA LSE:CAB IFNY ASX:MMR XCNQ:BDR TSXV:ARH TSXV:OEC TSXV:PEI TSXV:SCD TSXV:SMB EXNT TSXV:SPK ASX:PGY ASX:DOR TSXV:MCM.A LSE:SRO ASX:JPR TSXV:KFG

Address 5626 Larch Street, Vancouver, BC, CAN, V6M 4E1

Website http://www.cbmasia.ca

CBM Asia Development Corp is engaged in the exploration and development of its interests in gas properties in Indonesia.