Walcom GroupLSE:WALG Quick Ratio is 0.48 as of Jun. 2019, which is 79% below its 10-year median of 2.30. The stock has 6 warning signs investors should review.
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. Walcom Group's quick ratio for the quarter that ended in Jun. 2019 was 0.48.
Walcom Group has a quick ratio of 0.48. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Walcom Group's Quick Ratio or its related term are showing as below:
LSE:WALG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.48 Med: 2.3 Max: 2.89
Current: 0.48
During the past 13 years, Walcom Group's highest Quick Ratio was 2.89. The lowest was 0.48. And the median was 2.30.
LSE:WALG's Quick Ratio is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 1.12
vs LSE:WALG: 0.48
Walcom Group (LSE:WALG) 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.
Walcom Group Quick Ratio Related Terms
Walcom Group Quick Ratio Historical Data
* Premium members only.
The historical data trend for Walcom Group'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 Packaged Foods subindustry, Walcom Group'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.
Walcom Group Quick Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Walcom Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Walcom Group'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.
Walcom Group's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
Walcom Group (LSE:WALG) has a Quick Ratio of 0.48 as of Jun. 2019. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Walcom Group and its competitors. This is 79% below median its historical median of 2.30. Over the past decade, Walcom Group's Quick Ratio has ranged from 0.48 to 2.89.
Is Walcom Group's Quick Ratio too high?
Walcom Group's current Quick Ratio of 0.48 is 79% below median its 10-year median of 2.30. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 2.89. The Consumer Packaged Goods industry median Quick Ratio is 1.12. Walcom Group's value of 0.48 is 57.1% below this industry median.
How does Walcom Group's Quick Ratio compare to competitors?
Walcom Group's Quick Ratio of 0.48 can be compared against companies in the Consumer Packaged Goods industry. The industry median Quick Ratio is 1.12. Walcom Group's value of 0.48 is 57.1% below this benchmark. Historically, Walcom Group's own Quick Ratio has ranged from 0.48 to 2.89 over the past decade. While the company's 10-year median is 2.30 vs. the industry median of 1.12, Walcom Group has consistently been below the industry average. 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 Consumer Packaged Goods company?
The median Quick Ratio among Consumer Packaged Goods companies is 1.12, based on 1,984 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. Walcom Group's current Quick Ratio of 0.48 is 57.1% 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 Walcom Group and its competitors. For the Consumer Packaged Goods industry, the median Quick Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walcom Group's current Quick Ratio is 0.48, which is 79% below median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walcom Group stock overvalued right now?
Walcom Group (LSE:WALG) has a current Quick Ratio of 0.48. The current Quick Ratio is 0.48, which is 79% below median its 10-year median of 2.30 and 57.1% below the Consumer Packaged Goods industry median of 1.12. 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 Walcom Group (LSE:WALG), the current Quick Ratio is 0.48 as of Jun. 2019. 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.
Walcom Group Ltd is an investment holding company engaged in the manufacturing, distribution, and sale of chemical feed and additive products. The company offers products for pigs, poultries, aquatic, cows, and beef cattle and sheeps. Its pig's product includes porcinin plus, and porcimax; poultries include eggronin plus, and avianin plus, and aquatic include aquanin plus. Walcom's operations are located in China, Taiwan, Thailand, Korea and others.
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