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. China Mobile's quick ratio for the quarter that ended in Mar. 2024 was 0.96.
China Mobile has a quick ratio of 0.96. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for China Mobile's Quick Ratio or its related term are showing as below:
SHSE:600941'
s Quick Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1.08 Max: 1.21
Current: 0.96
During the past 13 years, China Mobile's highest Quick Ratio was 1.21. The lowest was 0.83. And the median was 1.08.
SHSE:600941's Quick Ratio is ranked better than 50.64% of 393
companies
in the Telecommunication Services industry
Industry Median: 0.96
vs SHSE:600941: 0.96
China Mobile Quick Ratio Historical Data
The historical data trend for China Mobile'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 China Mobile's Quick Ratio
For the Telecom Services subindustry, China Mobile'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.
China Mobile's Quick Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Mobile's Quick Ratio distribution charts can be found below:
* The bar in red indicates where China Mobile's Quick Ratio falls into.
China Mobile 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.
China Mobile's Quick Ratio for the fiscal year that ended in Dec. 2023 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.
China Mobile (SHSE:600941) 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.
China Mobile Quick Ratio Related Terms
Thank you for viewing the detailed overview of China Mobile's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
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