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Muromachi ChemicalsTSE:4885 +0.11%76 Quick Ratio is 1.93 as of Feb. 2026, which is 53% above its 10-year median of 1.26. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円990.45 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,611 Chemicals companies, Muromachi Chemicals ranks better than 58.41% on this metric.
Muromachi Chemicals (TSE:4885) 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.
Muromachi Chemicals Quick Ratio Related Terms
Muromachi Chemicals Quick Ratio Historical Data
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The historical data trend for Muromachi Chemicals'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.
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Quick Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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.
Muromachi Chemicals's Quick Ratio for the fiscal year that ended in May. 2026 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.
Muromachi Chemicals (TSE:4885) has a Quick Ratio of 1.93 as of Feb. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Muromachi Chemicals and its competitors. This is 53% above median its historical median of 1.26. Over the past decade, Muromachi Chemicals' Quick Ratio has ranged from 0.86 to 1.74. According to the industry distribution chart, Muromachi Chemicals ranks #670 out of 1611 companies in the Chemicals industry, placing it in the top 41.6%.
Is Muromachi Chemicals' Quick Ratio too high?
Muromachi Chemicals' current Quick Ratio of 1.93 is 53% above median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 1.74. The Chemicals industry median Quick Ratio is 1.39. Muromachi Chemicals' value of 1.93 is 38.8% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #670 out of 1611 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Quick Ratio compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #670 out of 1611 companies for Quick Ratio. This puts Muromachi Chemicals in the upper half of its industry. The industry median Quick Ratio is 1.39. Muromachi Chemicals' value of 1.93 is 38.8% above this benchmark. Historically, Muromachi Chemicals' own Quick Ratio has ranged from 0.86 to 1.74 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 1.39, Muromachi Chemicals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Chemicals company?
The median Quick Ratio among Chemicals companies is 1.39, based on 1,611 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Muromachi Chemicals's current Quick Ratio of 1.93 is 38.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Muromachi Chemicals and its competitors. For the Chemicals industry, the median Quick Ratio is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Quick Ratio is 1.93, which is 53% above median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円990.45, compared to a current price of 円900.00 — trading 9.1% below its estimated fair value. The current Quick Ratio is 1.93, which is 53% above median its 10-year median of 1.26 and 38.8% above the Chemicals industry median of 1.39. Muromachi Chemicals' overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Muromachi Chemicals (TSE:4885), the current Quick Ratio is 1.93 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円900.00 is trading 9.1% below its estimated GF Value™ of 円990.45.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Quick Ratio: 1.93 (53% above median its 10-year median of 1.26)
GF Value™: 円990.45 vs. price of 円900.00 (9.1% below fair value)
Industry Position: 38.8% above the Chemicals median (#670 of 1611)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score
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