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. Dragon Oil's quick ratio for the quarter that ended in Jun. 2015 was 3.07.
Dragon Oil has a quick ratio of 3.07. It generally indicates good short-term financial strength.
The historical rank and industry rank for Dragon Oil's Quick Ratio or its related term are showing as below:
LSE:DGO'
s Quick Ratio Range Over the Past 10 Years
Min: 2.74 Med: 3.07 Max: 4.55
Current: 3.07
During the past 13 years, Dragon Oil's highest Quick Ratio was 4.55. The lowest was 2.74. And the median was 3.07.
LSE:DGO's Quick Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.1
vs LSE:DGO: 3.07
Dragon Oil Quick Ratio Historical Data
The historical data trend for Dragon Oil'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 Dragon Oil's Quick Ratio
For the Oil & Gas E&P subindustry, Dragon Oil'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.
Dragon Oil's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Dragon Oil's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Dragon Oil's Quick Ratio falls into.
Dragon Oil 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.
Dragon Oil's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Dragon Oil (LSE:DGO) 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.
Dragon Oil Quick Ratio Related Terms
Thank you for viewing the detailed overview of Dragon Oil's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Dragon Oil PLC is an independent oil and gas exploration, development and production company. The Company's producing asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. It has exploration blocks offshore Tunisia (the Bargou Exploration Permit), in Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), offshore the Philippines (Service Contract 63) in partnership with other companies and Block 19 in Egypt. The Company develops the hydrocarbon reserves in the Cheleken Contract Area in accordance with the terms of the Production Sharing Agreement (PSA). As at 31 December 2014 the Company had probably oil reserves of 663 million barrels of oil and condensate, gas 2P reserves and contingent gas resources of c. 2.7 TCF. The Bargou Exploration Permit contains prospective resources, while Block 9, Sanduqli and Mazar-i-Sharif blocks and Block 19 are at an early stage of exploration. The Company is subject to the international laws and regulations that it operates in.
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