NSE:MOTHERSON's Quick Ratio is ranked worse than 68.51% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs NSE:MOTHERSON: 0.80
Samvardhana Motherson International (NSE:MOTHERSON) 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.
Samvardhana Motherson International Quick Ratio Related Terms
Samvardhana Motherson International 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.
Samvardhana Motherson International Quick Ratio Chart
NSE:MOTHERSON vs ORLY, AZO: Quick Ratio Comparison
For the Auto Parts subindustry, Samvardhana Motherson International'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.
Samvardhana Motherson International Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Samvardhana Motherson International's Quick Ratio falls into.
Samvardhana Motherson International 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.
* 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.
Samvardhana Motherson International (NSE:MOTHERSON) has a Quick Ratio of 0.80 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Samvardhana Motherson International and its competitors. This is near median its historical median of 0.79. Over the past decade, Samvardhana Motherson International's Quick Ratio has ranged from 0.69 to 1.14. According to the industry distribution chart, Samvardhana Motherson International ranks #916 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 68.5%.
Is Samvardhana Motherson International's Quick Ratio too high?
Samvardhana Motherson International's current Quick Ratio of 0.80 is near median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 1.14. The Vehicles & Parts industry median Quick Ratio is 1.05. Samvardhana Motherson International's value of 0.80 is 23.8% below this industry median. Based on the distribution chart, Samvardhana Motherson International ranks #916 out of 1337 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Samvardhana Motherson International has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Samvardhana Motherson International's Quick Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Samvardhana Motherson International ranks #916 out of 1337 companies for Quick Ratio. This places Samvardhana Motherson International in the lower half of its industry. The industry median Quick Ratio is 1.05. Samvardhana Motherson International's value of 0.80 is 23.8% below this benchmark. Historically, Samvardhana Motherson International's own Quick Ratio has ranged from 0.69 to 1.14 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 1.05, Samvardhana Motherson International 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 a Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.05, based on 1,337 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. Samvardhana Motherson International's current Quick Ratio of 0.80 is 23.8% 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 Samvardhana Motherson International and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Samvardhana Motherson International's current Quick Ratio is 0.80, which is near median its own 10-year median of 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Samvardhana Motherson International stock overvalued right now?
Based on GuruFocus' analysis, Samvardhana Motherson International (NSE:MOTHERSON) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹114.47, compared to a current price of ₹147.51 — trading 28.9% above its estimated fair value. The current Quick Ratio is 0.80, which is near median its 10-year median of 0.79 and 23.8% below the Vehicles & Parts industry median of 1.05. Samvardhana Motherson International's overall GF Score™ is 80/100 with 8 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 Samvardhana Motherson International (NSE:MOTHERSON), the current Quick Ratio is 0.80 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 Samvardhana Motherson International (NSE:MOTHERSON) Overvalued in 2026?
Based on GuruFocus' analysis, Samvardhana Motherson International stock appears to be overvalued.
The current stock price of ₹147.51 is trading 28.9% above its estimated GF Value™ of ₹114.47.
GuruFocus considers Samvardhana Motherson International to be Modestly Overvalued.
Key valuation signals for NSE:MOTHERSON:
Quick Ratio: 0.80 (near median its 10-year median of 0.79)
GF Value™: ₹114.47 vs. price of ₹147.51 (28.9% above fair value)
Industry Position: 23.8% below the Vehicles & Parts median (#916 of 1337)
No single metric tells the full story. See the NSE:MOTHERSON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Samvardhana Motherson International Business Description
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and others. The company has five reportable segments such as Wiring Harness, Modules and polymer products, Integrated Assemblies, Vision systems and Emerging businesses. It derives majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
80GF Score
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