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. Hensoldt AG's quick ratio for the quarter that ended in Sep. 2024 was 0.77.
Hensoldt AG has a quick ratio of 0.77. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Hensoldt AG's Quick Ratio or its related term are showing as below:
HNSDF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.77 Med: 0.85 Max: 1.28
Current: 0.77
During the past 5 years, Hensoldt AG's highest Quick Ratio was 1.28. The lowest was 0.77. And the median was 0.85.
HNSDF's Quick Ratio is ranked worse than 75.31% of 320
companies
in the Aerospace & Defense industry
Industry Median: 1.24
vs HNSDF: 0.77
Hensoldt AG Quick Ratio Historical Data
The historical data trend for Hensoldt AG'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 Hensoldt AG's Quick Ratio
For the Aerospace & Defense subindustry, Hensoldt AG'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.
Hensoldt AG's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hensoldt AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Hensoldt AG's Quick Ratio falls into.
Hensoldt AG 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.
Hensoldt AG'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.
Hensoldt AG (OTCPK:HNSDF) 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.
Hensoldt AG Quick Ratio Related Terms
Thank you for viewing the detailed overview of Hensoldt AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hensoldt AG is engaged in the business of providing defense and security electronics. Its product categories are Radar, IFF and Comms, Optronics, Spectrum Dominance, Avionics, and Integrated Solutions. The company operates in two segments: Sensors and Optronics, of which the majority of its revenue comes from the sensor segment. Its sensor segment provides system solutions and comprises three divisions Radar, Identification Friend or Foe (IFF) and Data Communications (COMMS), Spectrum Dominance and Airborne Solutions, and Customer Services. Its geographical segments are Europe, the Middle East, Asia-Pacific, North America, Africa, LATAM, and other regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HNSDF has been successfully added to your 