RailTel of India has a quick ratio of 1.20. It generally indicates good short-term financial strength.
The historical rank and industry rank for RailTel of India's Quick Ratio or its related term are showing as below:
NSE:RAILTEL'
s Quick Ratio Range Over the Past 10 Years
Min: 1.2 Med: 1.43 Max: 3.1
Current: 1.2
During the past 10 years, RailTel of India's highest Quick Ratio was 3.10. The lowest was 1.20. And the median was 1.43.
NSE:RAILTEL's Quick Ratio is ranked better than 61.76% of 387
companies
in the Telecommunication Services industry
Industry Median: 0.96
vs NSE:RAILTEL: 1.20
RailTel of India Quick Ratio Historical Data
The historical data trend for RailTel of India'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 RailTel of India's Quick Ratio
For the Telecom Services subindustry, RailTel of India'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.
RailTel of India's Quick Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's Quick Ratio distribution charts can be found below:
* The bar in red indicates where RailTel of India's Quick Ratio falls into.
RailTel of India 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.
RailTel of India'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.
RailTel of India (NSE:RAILTEL) 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.
RailTel of India Quick Ratio Related Terms
Thank you for viewing the detailed overview of RailTel of India's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
RailTel of India (NSE:RAILTEL) Business Description
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation and others; and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
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