What is Paramount Speciality Forgings Quick Ratio?
Paramount Speciality ForgingsNSE:PSFL +1.37%13 Quick Ratio is 0.85 as of Mar. 2025, which is 57% above its 10-year median of 0.54. GuruFocus rates NSE:PSFL with a GF Score™ of 13/100. The stock has 5 warning signs investors should review. Among 3,071 Industrial Products companies, Paramount Speciality Forgings ranks worse than 78.41% on this metric.
Paramount Speciality Forgings has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Paramount Speciality Forgings's Quick Ratio or its related term are showing as below:
NSE:PSFL'
s Quick Ratio Range Over the Past 10 Years
Min: 0.53 Med: 0.54 Max: 0.85
Current: 0.85
During the past 5 years, Paramount Speciality Forgings's highest Quick Ratio was 0.85. The lowest was 0.53. And the median was 0.54.
NSE:PSFL's Quick Ratio is ranked worse than 78.41% of 3071
companies
in the Industrial Products industry
Industry Median: 1.39
vs NSE:PSFL: 0.85
Paramount Speciality Forgings (NSE:PSFL) 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.
Paramount Speciality Forgings Quick Ratio Related Terms
Paramount Speciality Forgings 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.
Paramount Speciality Forgings Quick Ratio Chart
Paramount Speciality Forgings Annual Data
Trend
Mar21
Mar22
Mar23
Mar24
Mar25
Quick Ratio
0.53
0.68
0.54
0.53
0.85
Paramount Speciality Forgings Semi-Annual Data
Mar21
Mar22
Mar23
Mar24
Mar25
Quick Ratio
0.53
0.68
0.54
0.53
0.85
NSE:PSFL vs CRS, ATI, MLI: Quick Ratio Comparison
For the Metal Fabrication subindustry, Paramount Speciality Forgings'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.
Paramount Speciality Forgings Quick Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paramount Speciality Forgings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Paramount Speciality Forgings's Quick Ratio falls into.
Paramount Speciality Forgings 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.
Paramount Speciality Forgings (NSE:PSFL) has a Quick Ratio of 0.85 as of Mar. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Paramount Speciality Forgings and its competitors. This is 57% above median its historical median of 0.54. Over the past decade, Paramount Speciality Forgings' Quick Ratio has ranged from 0.53 to 0.85. According to the industry distribution chart, Paramount Speciality Forgings ranks #2408 out of 3071 companies in the Industrial Products industry, placing it in the top 78.4%.
Is Paramount Speciality Forgings' Quick Ratio too high?
Paramount Speciality Forgings' current Quick Ratio of 0.85 is 57% above median its 10-year median of 0.54. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 0.85. The Industrial Products industry median Quick Ratio is 1.39. Paramount Speciality Forgings' value of 0.85 is 38.8% below this industry median. Based on the distribution chart, Paramount Speciality Forgings ranks #2408 out of 3071 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Paramount Speciality Forgings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Speciality Forgings' Quick Ratio compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Paramount Speciality Forgings ranks #2408 out of 3071 companies for Quick Ratio. This places Paramount Speciality Forgings in the lower half of its industry. The industry median Quick Ratio is 1.39. Paramount Speciality Forgings' value of 0.85 is 38.8% below this benchmark. Historically, Paramount Speciality Forgings' own Quick Ratio has ranged from 0.53 to 0.85 over the past decade. While the company's 10-year median is 0.54 vs. the industry median of 1.39, Paramount Speciality Forgings 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 an Industrial Products company?
The median Quick Ratio among Industrial Products companies is 1.39, based on 3,071 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. Paramount Speciality Forgings's current Quick Ratio of 0.85 is 38.8% 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 Paramount Speciality Forgings and its competitors. For the Industrial Products industry, the median Quick Ratio is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Speciality Forgings's current Quick Ratio is 0.85, which is 57% above median its own 10-year median of 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Speciality Forgings stock overvalued right now?
Paramount Speciality Forgings (NSE:PSFL) has a current Quick Ratio of 0.85. The current Quick Ratio is 0.85, which is 57% above median its 10-year median of 0.54 and 38.8% below the Industrial Products industry median of 1.39. Paramount Speciality Forgings' overall GF Score™ is 13/100 with 5 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 Paramount Speciality Forgings (NSE:PSFL), the current Quick Ratio is 0.85 as of Mar. 2025. 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.
Paramount Speciality Forgings Business Description
Paramount Speciality Forgings Ltd is engaged in manufacturing steel forgings in India. It manufactures and provides forged components ranging in weight from one kilogram to four metric tons in rough or finish-machined condition. Its products are used in industries such as Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. The company only operates in the sale of carbon steel and stainless steel flanges and fittings, and other engineering goods made from steel and stainless steel, or any other goods and merchandise.
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