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Arabian PetroleumNSE:ARABIAN +4.27%66 Quick Ratio is 0.82 as of Mar. 2026, which is 1% above its 10-year median of 0.81. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,023 Oil & Gas companies, Arabian Petroleum ranks worse than 67.84% on this metric.
Arabian Petroleum (NSE:ARABIAN) 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.
Arabian Petroleum Quick Ratio Related Terms
Arabian Petroleum Quick Ratio Historical Data
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The historical data trend for Arabian Petroleum'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.
NSE:ARABIAN vs MPC, VLO, PSX: Quick Ratio Comparison
For the Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.
Arabian Petroleum Quick Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum'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.
Arabian Petroleum's Quick Ratio for the fiscal year that ended in Mar. 2026 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.
Arabian Petroleum (NSE:ARABIAN) has a Quick Ratio of 0.82 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Arabian Petroleum and its competitors. This is near median its historical median of 0.81. Over the past decade, Arabian Petroleum's Quick Ratio has ranged from 0.64 to 1.27. According to the industry distribution chart, Arabian Petroleum ranks #694 out of 1023 companies in the Oil & Gas industry, placing it in the top 67.8%.
Is Arabian Petroleum's Quick Ratio too high?
Arabian Petroleum's current Quick Ratio of 0.82 is near median its 10-year median of 0.81. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 1.27. The Oil & Gas industry median Quick Ratio is 1.15. Arabian Petroleum's value of 0.82 is 28.7% below this industry median. Based on the distribution chart, Arabian Petroleum ranks #694 out of 1023 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's Quick Ratio compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #694 out of 1023 companies for Quick Ratio. This places Arabian Petroleum in the lower half of its industry. The industry median Quick Ratio is 1.15. Arabian Petroleum's value of 0.82 is 28.7% below this benchmark. Historically, Arabian Petroleum's own Quick Ratio has ranged from 0.64 to 1.27 over the past decade. While the company's 10-year median is 0.81 vs. the industry median of 1.15, Arabian Petroleum 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 an Oil & Gas company?
The median Quick Ratio among Oil & Gas companies is 1.15, based on 1,023 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. Arabian Petroleum's current Quick Ratio of 0.82 is 28.7% 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median Quick Ratio is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current Quick Ratio is 0.82, which is near median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current Quick Ratio is 0.82, which is near median its 10-year median of 0.81 and 28.7% below the Oil & Gas industry median of 1.15. Arabian Petroleum's overall GF Score™ is 66/100 with 2 warning signs to review. 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 Arabian Petroleum (NSE:ARABIAN), the current Quick Ratio is 0.82 as of Mar. 2026. 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.
Is Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
Quick Ratio: 0.82 (near median its 10-year median of 0.81)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 28.7% below the Oil & Gas median (#694 of 1023)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
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