SIFCO Industries has a quick ratio of 0.75. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for SIFCO Industries's Quick Ratio or its related term are showing as below:
SIF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.58 Med: 0.83 Max: 2.57
Current: 0.75
During the past 13 years, SIFCO Industries's highest Quick Ratio was 2.57. The lowest was 0.58. And the median was 0.83.
SIF's Quick Ratio is ranked worse than 75.87% of 315
companies
in the Aerospace & Defense industry
Industry Median: 1.2
vs SIF: 0.75
SIFCO Industries Quick Ratio Historical Data
The historical data trend for SIFCO 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 SIFCO Industries's Quick Ratio
For the Aerospace & Defense subindustry, SIFCO 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.
SIFCO Industries's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, SIFCO Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SIFCO Industries's Quick Ratio falls into.
SIFCO 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.
SIFCO Industries's Quick Ratio for the fiscal year that ended in Sep. 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.
SIFCO Industries (AMEX:SIF) 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.
SIFCO Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of SIFCO Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SIFCO Industries Inc is engaged in the production of forgings and machined components for the Aerospace and Energy, Defense and Commercial Space markets. Its processes and services include forging, heat-treating and machining. It serves original equipment manufacturers (OEM) as well as aftermarket customers. Its products are made of steel, stainless steel, titanium and aluminium and include OEM and aftermarket components for aircraft and industrial gas turbine engines, steam turbine blades, structural airframe components, aircraft landing gear components, aircraft wheels and brakes, critical rotating components for helicopters and industrial products. Substantial revenue is derived from North America as well as operates in Europe.
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