The historical data trend for Li Peng Enterprise Co'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 Li Peng Enterprise Co's Quick Ratio
For the Textile Manufacturing subindustry, Li Peng Enterprise Co'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.
Li Peng Enterprise Co's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Li Peng Enterprise Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Li Peng Enterprise Co's Quick Ratio falls into.
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.
Li Peng Enterprise Co's Quick Ratio for the fiscal year that ended in Dec. 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.
Li Peng Enterprise Co (TPE:1447) 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.
Li Peng Enterprise Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Li Peng Enterprise Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Li Peng Enterprise Co Ltd is a Taiwan-based company which is primarily engaged in the manufacture and sale of textile products. The company's main products consist of nylon chips, nylon filament yarns, and nylon yarns with special functions, and these products contribute the majority of the company's total revenue. The company also provides various kinds of fabrics such as synthetic and natural woven fabric. The company's production line includes polymerization, spinning, weaving, dyeing, and finished fabrics.
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