CHSCHSCN.PFD -0.60% Quick Ratio is 0.61 as of Feb. 2019, which is 35% below its 10-year median of 0.94. The stock has 1 warning sign investors should review.
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. CHS's quick ratio for the quarter that ended in Feb. 2019 was 0.61.
CHS has a quick ratio of 0.61. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for CHS's Quick Ratio or its related term are showing as below:
CHSCN.PFD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.73 Med: 0.94 Max: 1.08
Current: 1.07
During the past 13 years, CHS's highest Quick Ratio was 1.08. The lowest was 0.73. And the median was 0.94.
CHSCN.PFD's Quick Ratio is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 1.12
vs CHSCN.PFD: 1.07
CHS (NAS:CHSCN.PFD) 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.
CHS Quick Ratio Related Terms
CHS Quick Ratio Historical Data
* Premium members only.
The historical data trend for CHS'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.
CHSCN.PFD vs RSSFF, NWGFF, TURV: Quick Ratio Comparison
For the Farm Products subindustry, CHS'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.
CHS Quick Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Quick Ratio distribution charts can be found below:
* The bar in red indicates where CHS's Quick Ratio falls into.
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.
CHS's Quick Ratio for the fiscal year that ended in Aug. 2018 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.
CHS (CHSCN.PFD) has a Quick Ratio of 0.61 as of Feb. 2019. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on CHS and its competitors. This is 35% below median its historical median of 0.94. Over the past decade, CHS's Quick Ratio has ranged from 0.73 to 1.08.
Is CHS's Quick Ratio too high?
CHS's current Quick Ratio of 0.61 is 35% below median its 10-year median of 0.94. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 1.08. The Consumer Packaged Goods industry median Quick Ratio is 1.12. CHS's value of 0.61 is 45.5% below this industry median.
How does CHS's Quick Ratio compare to RSSFF and NWGFF?
CHS's Quick Ratio of 0.61 can be compared against companies in the Consumer Packaged Goods industry. The industry median Quick Ratio is 1.12. CHS's value of 0.61 is 45.5% below this benchmark. Historically, CHS's own Quick Ratio has ranged from 0.73 to 1.08 over the past decade. While the company's 10-year median is 0.94 vs. the industry median of 1.12, CHS has consistently been below 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 Consumer Packaged Goods company?
The median Quick Ratio among Consumer Packaged Goods companies is 1.12, based on 1,987 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. CHS's current Quick Ratio of 0.61 is 45.5% 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 CHS and its competitors. For the Consumer Packaged Goods 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. CHS's current Quick Ratio is 0.61, which is 35% below median its own 10-year median of 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCN.PFD) has a current Quick Ratio of 0.61. The current Quick Ratio is 0.61, which is 35% below median its 10-year median of 0.94 and 45.5% below the Consumer Packaged Goods 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 CHS (CHSCN.PFD), the current Quick Ratio is 0.61 as of Feb. 2019. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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