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. Ad-Sol Nissin's quick ratio for the quarter that ended in Dec. 2023 was 4.09.
Ad-Sol Nissin has a quick ratio of 4.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ad-Sol Nissin's Quick Ratio or its related term are showing as below:
TSE:3837'
s Quick Ratio Range Over the Past 10 Years
Min: 1.99 Med: 2.44 Max: 4.09
Current: 4.09
During the past 13 years, Ad-Sol Nissin's highest Quick Ratio was 4.09. The lowest was 1.99. And the median was 2.44.
TSE:3837's Quick Ratio is ranked better than 82.7% of 2833
companies
in the Software industry
Industry Median: 1.65
vs TSE:3837: 4.09
Ad-Sol Nissin Quick Ratio Historical Data
The historical data trend for Ad-Sol Nissin'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 Ad-Sol Nissin's Quick Ratio
For the Information Technology Services subindustry, Ad-Sol Nissin'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.
Ad-Sol Nissin's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Ad-Sol Nissin's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ad-Sol Nissin's Quick Ratio falls into.
Ad-Sol Nissin 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.
Ad-Sol Nissin's Quick Ratio for the fiscal year that ended in Mar. 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.
Ad-Sol Nissin (TSE:3837) 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.
Ad-Sol Nissin Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ad-Sol Nissin's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ad-Sol Nissin Corp develops information systems for enterprises. The company provides Social Infrastructure Business, Advanced Industry Business, IoX Integrated Engineering Business, and Security solutions. The Social Infrastructure Business develops system integration services in social infrastructures such as energy, road, aerospace, and others. Advanced Industry Business promotes Next Generation EV Vehicle, Industrial Equipment, and others. The IoX Integrated Engineering Business propose solutions such as AI. Big Data, Wireless, and others, and Security Solution protect IoT devices from cyber attacks.
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