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. Terna Energy's quick ratio for the quarter that ended in Jun. 2023 was 1.74.
Terna Energy has a quick ratio of 1.74. It generally indicates good short-term financial strength.
The historical rank and industry rank for Terna Energy's Quick Ratio or its related term are showing as below:
LTS:0OJX'
s Quick Ratio Range Over the Past 10 Years
Min: 1.03 Med: 1.74 Max: 2.67
Current: 1.74
During the past 13 years, Terna Energy's highest Quick Ratio was 2.67. The lowest was 1.03. And the median was 1.74.
The historical data trend for Terna Energy'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 Terna Energy's Quick Ratio
For the Utilities - Renewable subindustry, Terna Energy'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.
Terna Energy's Quick Ratio Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Terna Energy's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Terna Energy's Quick Ratio falls into.
Terna Energy 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.
Terna Energy's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Terna Energy (LTS:0OJX) 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.
Terna Energy Quick Ratio Related Terms
Thank you for viewing the detailed overview of Terna Energy's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Terna Energy SA is a Greece based company mainly engaged in the energy and construction sector. It operates through the following segments: The Construction segment refers to the development of wind farms and other units for electricity production from renewable energy sources; The Electricity from Renewable Sources of Energy segment mainly concerns the production of electricity through wind energy; The Concessions Segment concerns the construction and operation of infrastructure and public sector projects in exchange for the long-term operation of the above projects through the provision of services to the public. The majority is from the Electricity from Renewable Sources of Energy segment. Geographically, the key revenue is from Greece.
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