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S Alam Cold Rolled Steels (DHA:SALAMCRST) 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.
S Alam Cold Rolled Steels Quick Ratio Related Terms
S Alam Cold Rolled Steels Quick Ratio Historical Data
* 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:SALAMCRST vs NUE, STLD, RS: Quick Ratio Comparison
For the Steel subindustry, S Alam Cold Rolled Steels'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.
S Alam Cold Rolled Steels Quick Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, S Alam Cold Rolled Steels's Quick Ratio distribution charts can be found below:
* The bar in red indicates where S Alam Cold Rolled Steels'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.
S Alam Cold Rolled Steels's Quick Ratio for the fiscal year that ended in Jun. 2023 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.
S Alam Cold Rolled Steels (DHA:SALAMCRST) has a Quick Ratio of 0.48 as of Mar. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on S Alam Cold Rolled Steels and its competitors.
Is S Alam Cold Rolled Steels' Quick Ratio too high?
S Alam Cold Rolled Steels' current Quick Ratio is 0.48. The Steel industry median Quick Ratio is 1.01. S Alam Cold Rolled Steels' value of 0.48 is 52.5% below this industry median. Overall, S Alam Cold Rolled Steels has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does S Alam Cold Rolled Steels' Quick Ratio compare to NUE and STLD?
S Alam Cold Rolled Steels' Quick Ratio of 0.48 can be compared against companies in the Steel industry. The industry median Quick Ratio is 1.01. S Alam Cold Rolled Steels' value of 0.48 is 52.5% 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 a Steel company?
The median Quick Ratio among Steel companies is 1.01, based on 635 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. S Alam Cold Rolled Steels's current Quick Ratio of 0.48 is 52.5% 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 S Alam Cold Rolled Steels and its competitors. For the Steel industry, the median Quick Ratio is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. S Alam Cold Rolled Steels's current Quick Ratio is 0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is S Alam Cold Rolled Steels stock overvalued right now?
S Alam Cold Rolled Steels (DHA:SALAMCRST) has a current Quick Ratio of 0.48. The current Quick Ratio is 0.48 and 52.5% below the Steel industry median of 1.01. S Alam Cold Rolled Steels' overall GF Score™ is 10/100. 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 S Alam Cold Rolled Steels (DHA:SALAMCRST), the current Quick Ratio is 0.48 as of Mar. 2024. 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.
S Alam Cold Rolled Steels Ltd is a steel manufacturing company. Its business activities include manufacturing and marketing cold rolled steel strips and galvanized steel sheets. The company has two business segments - the Cold Rolled Strips segment, which includes purchasing hot roll and manufacturing and distribution of cold-rolled strips; and the Non-Oxide Furnace segment which comprises purchasing cold-rolled strips and manufacturing and distribution of galvanized steel sheets.
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