Artedz Fabs (NSE:ARTEDZ) Quick Ratio: 0.93 (As of Sep. 2018)


What is Artedz Fabs Quick Ratio?

Artedz Fabs NSE:ARTEDZ Quick Ratio is 0.93 as of Sep. 2018.

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. Artedz Fabs's quick ratio for the quarter that ended in Sep. 2018 was 0.93.

Artedz Fabs has a quick ratio of 0.93. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Artedz Fabs's Quick Ratio or its related term are showing as below:

NSE:ARTEDZ's Quick Ratio is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 1.1
* Ranked among companies with meaningful Quick Ratio only.

Artedz Fabs  (NSE:ARTEDZ) 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.

Artedz Fabs Quick Ratio Related Terms

Artedz Fabs Quick Ratio Historical Data

* Premium members only.

The historical data trend for Artedz Fabs'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.

Artedz Fabs Quick Ratio Chart

Artedz Fabs Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18
Quick Ratio
0.50 0.61 0.53 0.76 0.90

Artedz Fabs Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Mar18 Sep18
Quick Ratio Get a 7-Day Free Trial 0.61 0.53 0.76 0.90 0.93

NSE:ARTEDZ vs : Quick Ratio Comparison

For the Textile Manufacturing subindustry, Artedz Fabs'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.

Artedz Fabs Quick Ratio vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Artedz Fabs's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Artedz Fabs's Quick Ratio falls into.


Artedz Fabs 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.

Artedz Fabs's Quick Ratio for the fiscal year that ended in Mar. 2018 is calculated as

Quick Ratio (A: Mar. 2018 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(549.5-208.241)/377.16
=0.90

Artedz Fabs's Quick Ratio for the quarter that ended in Sep. 2018 is calculated as

Quick Ratio (Q: Sep. 2018 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(680.165-241.974)/471.41
=0.93

* 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.

Frequently Asked Questions Learn more about Quick Ratio →
What does a Quick Ratio of 0.93 mean?
Artedz Fabs (NSE:ARTEDZ) has a Quick Ratio of 0.93 as of Sep. 2018. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Artedz Fabs and its competitors.
Is Artedz Fabs' Quick Ratio too high?
Artedz Fabs' current Quick Ratio is 0.93. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.10. Artedz Fabs' value of 0.93 is 15.5% below this industry median.
How does Artedz Fabs' Quick Ratio compare to ?
Artedz Fabs' Quick Ratio of 0.93 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Quick Ratio is 1.10. Artedz Fabs' value of 0.93 is 15.5% below this benchmark. 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 a Manufacturing - Apparel & Accessories company?
The median Quick Ratio among Manufacturing - Apparel & Accessories companies is 1.10, based on 1,067 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. Artedz Fabs's current Quick Ratio of 0.93 is 15.5% 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 Artedz Fabs and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Artedz Fabs's current Quick Ratio is 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Artedz Fabs stock overvalued right now?
Artedz Fabs (NSE:ARTEDZ) has a current Quick Ratio of 0.93. The current Quick Ratio is 0.93 and 15.5% below the Manufacturing - Apparel & Accessories industry median of 1.10. 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 Artedz Fabs (NSE:ARTEDZ), the current Quick Ratio is 0.93 as of Sep. 2018. 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.

Artedz Fabs Business Description

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Address Off Aarey Road, 206, Gambhir Industrial Estate, Opposite Paramount Print, Hanuman Tekdi, Mumbai, MH, IND, 400063
Artedz Fabs Ltd is a leading manufacturer of cotton yarn dyed fabrics in India. The portfolio encompasses manufacturing of premium quality apparel fabrics for men's clothing by producing various fabric blends and selling directly to manufacturers, retailers and global brands. Besides the regular cotton qualities, it also deals in fancy yarns like slubs, blended yarns like tensil linens, cotton modals, cotton linens and lycra.