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. SME Leasing's quick ratio for the quarter that ended in Sep. 2024 was 0.04.
SME Leasing has a quick ratio of 0.04. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for SME Leasing's Quick Ratio or its related term are showing as below:
KAR:SLL's Quick Ratio is not ranked *
in the Credit Services industry.
Industry Median: 4.93 * Ranked among companies with meaningful Quick Ratio only.
SME Leasing (KAR:SLL) 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.
SME Leasing Quick Ratio Related Terms
SME Leasing Quick Ratio Historical Data
* Premium members only.
The historical data trend for SME Leasing'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 Credit Services subindustry, SME Leasing'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.
SME Leasing Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, SME Leasing's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SME Leasing'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.
SME Leasing'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.
SME Leasing (KAR:SLL) has a Quick Ratio of 0.04 as of Sep. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on SME Leasing and its competitors.
Is SME Leasing's Quick Ratio too high?
SME Leasing's current Quick Ratio is 0.04. The Credit Services industry median Quick Ratio is 4.93. SME Leasing's value of 0.04 is 99.2% below this industry median. Overall, SME Leasing has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does SME Leasing's Quick Ratio compare to V and MA?
SME Leasing's Quick Ratio of 0.04 can be compared against companies in the Credit Services industry. The industry median Quick Ratio is 4.93. SME Leasing's value of 0.04 is 99.2% 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 4.93, based on 394 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. SME Leasing's current Quick Ratio of 0.04 is 99.2% 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 SME Leasing and its competitors. For the Credit Services industry, the median Quick Ratio is 4.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SME Leasing's current Quick Ratio is 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SME Leasing stock overvalued right now?
SME Leasing (KAR:SLL) has a current Quick Ratio of 0.04. The current Quick Ratio is 0.04 and 99.2% below the Credit Services industry median of 4.93. SME Leasing's overall GF Score™ is 2/100. 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 SME Leasing (KAR:SLL), the current Quick Ratio is 0.04 as of Sep. 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.
SME Leasing Ltd along with its subsidiaries is engaged in resolving, advising, and supporting the financial needs of small as well as medium size businessmen, traders, professionals, and educationists. The company's product profile includes SME Automobile, SME Cash Support, SME Machine Plus, SME Power Plus and SME Medical Equip. Its segments are finance lease, loans and receivables and investments.
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