FAR Chemical Industry has a quick ratio of 0.55. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for FAR Chemical Industry's Quick Ratio or its related term are showing as below:
DHA:FARCHEM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.25 Med: 9.01 Max: 26.93
Current: 0.55
During the past 12 years, FAR Chemical Industry's highest Quick Ratio was 26.93. The lowest was 0.25. And the median was 9.01.
DHA:FARCHEM's Quick Ratio is ranked worse than 89.13% of 1610
companies
in the Chemicals industry
Industry Median: 1.375
vs DHA:FARCHEM: 0.55
FAR Chemical Industry (DHA:FARCHEM) 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.
FAR Chemical Industry Quick Ratio Related Terms
FAR Chemical Industry Quick Ratio Historical Data
* Premium members only.
The historical data trend for FAR Chemical Industry'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.
DHA:FARCHEM vs LIN, SHW, ECL: Quick Ratio Comparison
For the Specialty Chemicals subindustry, FAR Chemical Industry'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.
FAR Chemical Industry Quick Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, FAR Chemical Industry's Quick Ratio distribution charts can be found below:
* The bar in red indicates where FAR Chemical Industry'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.
FAR Chemical Industry's Quick Ratio for the fiscal year that ended in Jun. 2025 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.
FAR Chemical Industry (DHA:FARCHEM) has a Quick Ratio of 0.55 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on FAR Chemical Industry and its competitors. This is 94% below median its historical median of 9.01. Over the past decade, FAR Chemical Industry's Quick Ratio has ranged from 0.25 to 26.93. According to the industry distribution chart, FAR Chemical Industry ranks #1435 out of 1610 companies in the Chemicals industry, placing it in the top 89.1%.
Is FAR Chemical Industry's Quick Ratio too high?
FAR Chemical Industry's current Quick Ratio of 0.55 is 94% below median its 10-year median of 9.01. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 26.93. The Chemicals industry median Quick Ratio is 1.38. FAR Chemical Industry's value of 0.55 is 60% below this industry median. Based on the distribution chart, FAR Chemical Industry ranks #1435 out of 1610 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, FAR Chemical Industry has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FAR Chemical Industry's Quick Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, FAR Chemical Industry ranks #1435 out of 1610 companies for Quick Ratio. This places FAR Chemical Industry in the lower half of its industry. The industry median Quick Ratio is 1.38. FAR Chemical Industry's value of 0.55 is 60% below this benchmark. Historically, FAR Chemical Industry's own Quick Ratio has ranged from 0.25 to 26.93 over the past decade. While the company's 10-year median is 9.01 vs. the industry median of 1.38, FAR Chemical Industry 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 Chemicals company?
The median Quick Ratio among Chemicals companies is 1.38, based on 1,610 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. FAR Chemical Industry's current Quick Ratio of 0.55 is 60% 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 FAR Chemical Industry 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. FAR Chemical Industry's current Quick Ratio is 0.55, which is 94% below median its own 10-year median of 9.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FAR Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, FAR Chemical Industry (DHA:FARCHEM) is currently considered Fairly Valued. The stock's GF Value™ is BDT18.80, compared to a current price of BDT18.50 — trading 1.6% below its estimated fair value. The current Quick Ratio is 0.55, which is 94% below median its 10-year median of 9.01 and 60% below the Chemicals industry median of 1.38. FAR Chemical Industry's overall GF Score™ is 87/100 with 7 warning signs to review. 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 FAR Chemical Industry (DHA:FARCHEM), the current Quick Ratio is 0.55 as of Mar. 2026. 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.
Is FAR Chemical Industry (DHA:FARCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, FAR Chemical Industry stock appears to be undervalued.
The current stock price of BDT18.50 is trading 1.6% below its estimated GF Value™ of BDT18.80.
GuruFocus considers FAR Chemical Industry to be Fairly Valued.
Key valuation signals for DHA:FARCHEM:
Quick Ratio: 0.55 (94% below median its 10-year median of 9.01)
GF Value™: BDT18.80 vs. price of BDT18.50 (1.6% below fair value)
Industry Position: 60% below the Chemicals median (#1435 of 1610)
No single metric tells the full story. See the DHA:FARCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The company is principally engaged in the manufacture and export of Chemical products to different export-oriented Textiles, dyeing and Apparels industries. It generates all of its revenue from the sale of Yarn.
87GF Score
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