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. Ringmetall SE's quick ratio for the quarter that ended in Dec. 2023 was 1.13.
Ringmetall SE has a quick ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ringmetall SE's Quick Ratio or its related term are showing as below:
FRA:HP3A'
s Quick Ratio Range Over the Past 10 Years
Min: 0.52 Med: 0.99 Max: 1.35
Current: 1.13
During the past 13 years, Ringmetall SE's highest Quick Ratio was 1.35. The lowest was 0.52. And the median was 0.99.
FRA:HP3A's Quick Ratio is ranked worse than 62.99% of 3018
companies
in the Industrial Products industry
Industry Median: 1.405
vs FRA:HP3A: 1.13
Ringmetall SE Quick Ratio Historical Data
The historical data trend for Ringmetall SE'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 Ringmetall SE's Quick Ratio
For the Tools & Accessories subindustry, Ringmetall SE'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.
Ringmetall SE's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ringmetall SE's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ringmetall SE's Quick Ratio falls into.
Ringmetall SE 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.
Ringmetall SE's Quick Ratio for the fiscal year that ended in Dec. 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.
Ringmetall SE (FRA:HP3A) 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.
Ringmetall SE Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ringmetall SE's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ringmetall SE is a supplier in the packaging industry with a focus on packaging elements in the field of industrial drums. Its main activities are allocated to the Industrial Packaging and Industrial Handling business units. The majority of its revenue is generated from industrial packaging segment. The products offered by the group are Clamping rings and lids, Vehicle attachment parts, and other products, of which a majority of the revenue is generated from the sales of Clamping rings and lids. The Industrial packaging segment covers the production and sale of clamping rings and the associated closures, whereas the Industrial Handling segment includes the production and marketing of vehicle attachment parts for special vehicles in logistics and warehouse logistics as well as agriculture.
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