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. Lanka Walltiles's quick ratio for the quarter that ended in Mar. 2024 was 0.57.
Lanka Walltiles has a quick ratio of 0.57. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Lanka Walltiles's Quick Ratio or its related term are showing as below:
COL:LWL.N0000'
s Quick Ratio Range Over the Past 10 Years
Min: 0.38 Med: 0.7 Max: 1
Current: 0.57
During the past 13 years, Lanka Walltiles's highest Quick Ratio was 1.00. The lowest was 0.38. And the median was 0.70.
COL:LWL.N0000's Quick Ratio is ranked worse than 90.73% of 1694
companies
in the Construction industry
Industry Median: 1.28
vs COL:LWL.N0000: 0.57
Lanka Walltiles Quick Ratio Historical Data
The historical data trend for Lanka Walltiles'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 Lanka Walltiles's Quick Ratio
For the Building Products & Equipment subindustry, Lanka Walltiles'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.
Lanka Walltiles's Quick Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Lanka Walltiles's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lanka Walltiles's Quick Ratio falls into.
Lanka Walltiles 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.
Lanka Walltiles'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.
Lanka Walltiles (COL:LWL.N0000) 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.
Lanka Walltiles Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lanka Walltiles's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lanka Walltiles (COL:LWL.N0000) Business Description
Lanka Walltiles PLC is a ceramic wall tile manufacturer in Sri Lanka. The company comprises the following business segments: Tiles and Associated Items segment, which manufactures and distributes wall tiles, floor tiles and related products; Biological Assets segment is engaged in the cultivation, processing, and sale of tea and rubber; Aluminum Products segment is engaged in the manufacturing and distribution of aluminum extrusions and allied products through a network of dealers and distributors; and Packaging Materials division, which manufactures and distributes packaging materials. The company caters to both domestic and international markets.
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