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Indian Railway Finance (NSE:IRFC) 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.
Indian Railway Finance Quick Ratio Related Terms
Indian Railway Finance Quick Ratio Historical Data
* 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.
For the Credit Services subindustry, Indian Railway Finance'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.
Indian Railway Finance Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance'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.
Indian Railway Finance'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.
Indian Railway Finance (NSE:IRFC) has a Quick Ratio of 0.00 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Indian Railway Finance and its competitors. Over the past decade, Indian Railway Finance's Quick Ratio has ranged from 0.46 to 101,288.20. According to the industry distribution chart, Indian Railway Finance ranks #2 out of 400 companies in the Credit Services industry, placing it in the top 0.5%.
Is Indian Railway Finance's Quick Ratio too high?
Indian Railway Finance's current Quick Ratio is 0.00. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 101,288.20. Based on the distribution chart, Indian Railway Finance ranks #2 out of 400 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Quick Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #2 out of 400 companies for Quick Ratio. This places Indian Railway Finance in the top 1% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 3.69. Historically, Indian Railway Finance's own Quick Ratio has ranged from 0.46 to 101,288.20 over the past decade. 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 3.69, based on 400 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. 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 Indian Railway Finance and its competitors. For the Credit Services industry, the median Quick Ratio is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current Quick Ratio is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹133.02, compared to a current price of ₹89.15 — trading 33% below its estimated fair value. The current Quick Ratio is 0.00. Indian Railway Finance's overall GF Score™ is 70/100 with 9 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 Indian Railway Finance (NSE:IRFC), the current Quick Ratio is 0.00 as of Jun. 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹89.15 is trading 33% below its estimated GF Value™ of ₹133.02.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
Quick Ratio: 0.00
GF Value™: ₹133.02 vs. price of ₹89.15 (33% below fair value)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
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