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. Sameer Africa's quick ratio for the quarter that ended in Jun. 2023 was 1.28.
Sameer Africa has a quick ratio of 1.28. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sameer Africa's Quick Ratio or its related term are showing as below:
NAI:SMER'
s Quick Ratio Range Over the Past 10 Years
Min: 0.45 Med: 1.04 Max: 2.67
Current: 1.28
During the past 12 years, Sameer Africa's highest Quick Ratio was 2.67. The lowest was 0.45. And the median was 1.04.
NAI:SMER's Quick Ratio is ranked better than 61.06% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.06
vs NAI:SMER: 1.28
Sameer Africa Quick Ratio Historical Data
The historical data trend for Sameer Africa'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 Sameer Africa's Quick Ratio
For the Auto Parts subindustry, Sameer Africa'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.
Sameer Africa's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sameer Africa's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sameer Africa's Quick Ratio falls into.
Sameer Africa 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.
Sameer Africa'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.
Sameer Africa (NAI:SMER) 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.
Sameer Africa Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sameer Africa's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sameer Africa Ltd engages in the manufacturing and distribution of tyres and allied products and the letting of investment property. The company operates through four business segments: sourcing and distribution, regional operations, Yana tyre centre, and rental business where the sourcing and distribution segment is engaged in the manufacturing and distribution of tires, tubes, and flaps, the regional operations segment engages in the buying and distribution of tires, tubes, and flaps in the Eastern Africa region, Yana tyre center segment is involved in the retailing of tires, tubes, and flaps, and the provision of tire-related services and the rental business segment is engaged in the letting of investment properties.
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