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. ALBA SE's quick ratio for the quarter that ended in Jun. 2024 was 2.89.
ALBA SE has a quick ratio of 2.89. It generally indicates good short-term financial strength.
The historical rank and industry rank for ALBA SE's Quick Ratio or its related term are showing as below:
HAM:ABA's Quick Ratio is not ranked *
in the Waste Management industry.
Industry Median: 1.42 * Ranked among companies with meaningful Quick Ratio only.
ALBA SE (HAM:ABA) 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.
ALBA SE Quick Ratio Related Terms
ALBA SE Quick Ratio Historical Data
* Premium members only.
The historical data trend for ALBA 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.
For the Waste Management subindustry, ALBA 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.
ALBA SE Quick Ratio vs Waste Management Industry
For the Waste Management industry and Industrials sector, ALBA SE's Quick Ratio distribution charts can be found below:
* The bar in red indicates where ALBA SE'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.
ALBA 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.
ALBA SE (HAM:ABA) has a Quick Ratio of 2.89 as of Jun. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on ALBA SE and its competitors.
Is ALBA SE's Quick Ratio too high?
ALBA SE's current Quick Ratio is 2.89. The Waste Management industry median Quick Ratio is 1.42. ALBA SE's value of 2.89 is 103.5% above this industry median. Overall, ALBA SE has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does ALBA SE's Quick Ratio compare to WM and RSG?
ALBA SE's Quick Ratio of 2.89 can be compared against companies in the Waste Management industry. The industry median Quick Ratio is 1.42. ALBA SE's value of 2.89 is 103.5% above 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 Waste Management company?
The median Quick Ratio among Waste Management companies is 1.42, based on 248 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. ALBA SE's current Quick Ratio of 2.89 is 103.5% above 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 ALBA SE and its competitors. For the Waste Management industry, the median Quick Ratio is 1.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALBA SE's current Quick Ratio is 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALBA SE stock overvalued right now?
ALBA SE (HAM:ABA) has a current Quick Ratio of 2.89. The current Quick Ratio is 2.89 and 103.5% above the Waste Management industry median of 1.42. ALBA SE's 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 ALBA SE (HAM:ABA), the current Quick Ratio is 2.89 as of Jun. 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.
ALBA SE is a German based holding company providing environmental services. Its activities are divided into two segments including Steel & Metals Recycling segment and Services segment. The Steel and Metals Recycling segment comprises all of the company's subsidiaries that undertake to recycle of steel and metals activities. The Services segment comprises activities, such as take-back of transport packaging, sales packaging and used paper bags, as well as recovery of waste electrical and electronic equipment. A major part of revenue comes from Steel and Metals segment. It operates in Germany, European countries and Non-European countries, Germany being the country with highest sales.
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