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. Heritage Foods's quick ratio for the quarter that ended in Dec. 2023 was 0.00.
Heritage Foods has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Heritage Foods's Quick Ratio or its related term are showing as below:
NSE:HERITGFOOD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.24 Med: 0.39 Max: 1.1
Current: 0.8
During the past 13 years, Heritage Foods's highest Quick Ratio was 1.10. The lowest was 0.24. And the median was 0.39.
NSE:HERITGFOOD's Quick Ratio is ranked worse than 61.86% of 1914
companies
in the Consumer Packaged Goods industry
Industry Median: 1.03
vs NSE:HERITGFOOD: 0.80
Heritage Foods Quick Ratio Historical Data
The historical data trend for Heritage Foods'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 Heritage Foods's Quick Ratio
For the Packaged Foods subindustry, Heritage Foods'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.
Heritage Foods's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Heritage Foods's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Heritage Foods's Quick Ratio falls into.
Heritage Foods 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.
Heritage Foods's Quick Ratio for the fiscal year that ended in Mar. 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.
Heritage Foods (NSE:HERITGFOOD) 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.
Heritage Foods Quick Ratio Related Terms
Thank you for viewing the detailed overview of Heritage Foods's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Heritage Foods (NSE:HERITGFOOD) Business Description
Heritage Foods Ltd is engaged in the food-related and renewable energy business. The company's operating segments are Dairy Vertical, Renewable energy vertical, and Feed vertical. Dairy Vertical is engaged in the manufacturing and marketing of milk, curd, buttermilk, lassi, ice cream, paneer, table butter, milk powder, and others. Renewable energy vertical produces power for captive consumption through its solar and wind power plants whereas, feed vertical is engaged in the manufacturing of cattle and fish feeds. It generates a majority of its revenue from the Dairy Vertical segment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NSE:HERITGFOOD has been successfully added to your 