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. Shiseido Co's quick ratio for the quarter that ended in Jun. 2024 was 0.75.
Shiseido Co 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 Shiseido Co's Quick Ratio or its related term are showing as below:
TSE:4911'
s Quick Ratio Range Over the Past 10 Years
Min: 0.66 Med: 1.01 Max: 1.58
Current: 0.75
During the past 13 years, Shiseido Co's highest Quick Ratio was 1.58. The lowest was 0.66. And the median was 1.01.
TSE:4911's Quick Ratio is ranked worse than 66.63% of 1921
companies
in the Consumer Packaged Goods industry
Industry Median: 1.08
vs TSE:4911: 0.75
Shiseido Co Quick Ratio Historical Data
The historical data trend for Shiseido 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 Shiseido Co's Quick Ratio
For the Household & Personal Products subindustry, Shiseido 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.
Shiseido Co's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Shiseido Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Shiseido Co's Quick Ratio falls into.
Shiseido Co 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.
Shiseido Co'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.
Shiseido Co (TSE:4911) 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.
Shiseido Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Shiseido Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Shiseido is a leading Japanese cosmetics manufacturer. Founded in 1872, the first Western-style pharmacy in Ginza, Tokyo, it is one of the oldest cosmetics companies globally. Shiseido's suite of 31 brands, including its namesake brand and luxury Clé de Peau Beauté, has an 9.3% share of Japan's beauty and personal care market and 18.3% share of Japan's premium segment according to Euromonitor. It is also ranked No. 3 after Estée Lauder and L'Oréal, with 7.6% market share in the global premium skincare space, thanks to a strong presence in China. China, Japan, and western markets each account for about 25% of sales, followed by 15% of travel retail, and 6% in Asia. Its distribution channels include department stores, drugstores, specialty retailers, travel retailers, and e-commerce.
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