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. Lux Industries's quick ratio for the quarter that ended in Sep. 2024 was 1.84.
Lux Industries has a quick ratio of 1.84. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lux Industries's Quick Ratio or its related term are showing as below:
NSE:LUXIND'
s Quick Ratio Range Over the Past 10 Years
Min: 0.81 Med: 1.27 Max: 1.96
Current: 1.84
During the past 10 years, Lux Industries's highest Quick Ratio was 1.96. The lowest was 0.81. And the median was 1.27.
NSE:LUXIND's Quick Ratio is ranked better than 73.11% of 1071
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.02
vs NSE:LUXIND: 1.84
Lux Industries Quick Ratio Historical Data
The historical data trend for Lux Industries'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 Lux Industries's Quick Ratio
For the Apparel Manufacturing subindustry, Lux Industries'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.
Lux Industries's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Lux Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lux Industries's Quick Ratio falls into.
Lux Industries 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.
Lux Industries's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Lux Industries (NSE:LUXIND) 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.
Lux Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lux Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lux Industries Ltd is an Indian company that is engaged in manufacturing and sales of knitwear for men, women, and children. The company's products include briefs, trunks, drawers, vests, Bermudas, t-shirts, socks, leggings, bloomers, slacks and slips, and winter wear. It has three distinct business verticals each specializing in the production, marketing, and distribution of products under various brands such as; Vertical A comprises Lux Cozi, ONN, Lux Cotts wool, Lux Mozze, and One8 brands; Vertical B includes Lux Venus, Lyra, Lux Inferno, and Lux Nitro; and Vertical C includes GenX, Lux Classic, Lux Karishma, and Lux Amore brands. Maximum revenue is generated from Verticle B. Geographically, it caters to both domestic and international markets and derives its key revenue within India.
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