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. PSB Industries's quick ratio for the quarter that ended in Dec. 2020 was 1.13.
PSB Industries has a quick ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for PSB Industries's Quick Ratio or its related term are showing as below:
LTS:0IIA's Quick Ratio is not ranked *
in the Packaging & Containers industry.
Industry Median: 1.2 * Ranked among companies with meaningful Quick Ratio only.
PSB Industries Quick Ratio Historical Data
The historical data trend for PSB Industries'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 PSB Industries's Quick Ratio
For the Packaging & Containers subindustry, PSB Industries'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.
PSB Industries's Quick Ratio Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, PSB Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where PSB Industries's Quick Ratio falls into.
PSB Industries 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.
PSB Industries's Quick Ratio for the fiscal year that ended in Dec. 2020 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.
PSB Industries (LTS:0IIA) 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.
PSB Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of PSB Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
PSB Industries SA is a holding company, which engages in the packaging of specialty chemicals and cosmetics. It operates its business through the following segments: Luxury and Beauty, Food and Distribution, Specialty Chemicals and Healthcare and Industry. The Luxury and Beauty segment specializes in plastic injection and finishing for the cosmetics and perfume industry. The Food and Distribution segment specializes in the design and manufacture food tray, blister pack, thermoformed packaging. The Specialty Chemicals segment specializes in the production of powders and liquids based on ultra-pure alumina. Healthcare and Industry segment focuses on a primary and secondary market. Most of its revenue is generated in France.
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