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. Lifezone Metals's quick ratio for the quarter that ended in Jun. 2024 was 1.08.
Lifezone Metals has a quick ratio of 1.08. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lifezone Metals's Quick Ratio or its related term are showing as below:
LZM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.08 Med: 4.44 Max: 20.27
Current: 1.08
During the past 4 years, Lifezone Metals's highest Quick Ratio was 20.27. The lowest was 1.08. And the median was 4.44.
LZM's Quick Ratio is ranked worse than 57.84% of 2654
companies
in the Metals & Mining industry
Industry Median: 1.52
vs LZM: 1.08
Lifezone Metals Quick Ratio Historical Data
The historical data trend for Lifezone Metals'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 Lifezone Metals's Quick Ratio
For the Other Industrial Metals & Mining subindustry, Lifezone Metals'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.
Lifezone Metals's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lifezone Metals's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lifezone Metals's Quick Ratio falls into.
Lifezone Metals 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.
Lifezone Metals'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.
Lifezone Metals (NYSE:LZM) 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.
Lifezone Metals Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lifezone Metals's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lifezone Metals Ltd seeks to support the clean energy transition through the licensing of Hydromet Technology as an alternative to smelting and metals refining and to become an emerging supplier of responsibly sourced, lower-carbon and lower-sulfur dioxide emission metals to the battery, EV, and hydrogen markets modern pre-development exploration-stage metals company. Its business comprises two segments: Metals extraction and refining for developing and operating a vertically integrated base metal operation in the northwest region of Tanzania and Intellectual property licensing comprises patents residing with and managed by the subsidiary.
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