Transaction Capital (JSE:TCP) Quick Ratio : 1.66 (As of Mar. 2024)

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What is Transaction Capital Quick Ratio?

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. Transaction Capital's quick ratio for the quarter that ended in Mar. 2024 was 1.66.

Transaction Capital has a quick ratio of 1.66. It generally indicates good short-term financial strength.

The historical rank and industry rank for Transaction Capital's Quick Ratio or its related term are showing as below:

JSE:TCP' s Quick Ratio Range Over the Past 10 Years
Min: 1.66 Med: 3.39 Max: 32.47
Current: 1.66

During the past 13 years, Transaction Capital's highest Quick Ratio was 32.47. The lowest was 1.66. And the median was 3.39.

JSE:TCP's Quick Ratio is ranked worse than
68.78% of 378 companies
in the Credit Services industry
Industry Median: 4.515 vs JSE:TCP: 1.66

Transaction Capital Quick Ratio Historical Data

The historical data trend for Transaction Capital'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.

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Transaction Capital Quick Ratio Chart

Transaction Capital Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Quick Ratio

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3.34

3.44

2.51

1.89

1.67

Transaction Capital Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Quick Ratio	Get a 7-Day Free Trial															2.19	1.89	6.31	1.67	1.66

Competitive Comparison of Transaction Capital's Quick Ratio

For the Credit Services subindustry, Transaction Capital'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.

Transaction Capital's Quick Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Transaction Capital's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Transaction Capital's Quick Ratio falls into.

Transaction Capital 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.

Transaction Capital's Quick Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Quick Ratio (A: Sep. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(23914	-	3005)	/	12516
	=	1.67

Transaction Capital's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(28777	-	1049)	/	16672
	=	1.66

Transaction Capital (JSE:TCP) 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.

Transaction Capital Quick Ratio Related Terms

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Transaction Capital (JSE:TCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Transaction Capital Ltd (JSE:TCP) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

W55:Germany

Address

24 Cradock and Tyrwhitt Avenue, The Bank, 12th Floor, Rosebank, Johannesburg, GT, ZAF, 2196

Website

https://www.transactioncapital.co.za

Transaction Capital Ltd is an investment holding company. The company's operating segment includes SA Taxi; Nutun, WeBuyCars, and Group executive office. It generates maximum revenue from the WeBuyCars segment. WeBuyCars segment includes buyer, distributor, and retailer of vehicles, which also offers financial and other allied products. SA Taxi segment is engaged in a vertically integrated taxi platform incorporating a unique blend of vehicle procurement, retail, repossession and refurbishment capabilities with asset-backed developmental finance and insurance competencies for focused vehicle types.