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. KDM Shipping's quick ratio for the quarter that ended in Jun. 2018 was 11.48.
KDM Shipping has a quick ratio of 11.48. It generally indicates good short-term financial strength.
The historical rank and industry rank for KDM Shipping's Quick Ratio or its related term are showing as below:
WAR:KDM's Quick Ratio is not ranked *
in the Transportation industry.
Industry Median: 1.37 * Ranked among companies with meaningful Quick Ratio only.
KDM Shipping (WAR:KDM) 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.
KDM Shipping Quick Ratio Related Terms
KDM Shipping Quick Ratio Historical Data
* Premium members only.
The historical data trend for KDM Shipping'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.
WAR:KDM vs ESEA, GLBS, SHIP: Quick Ratio Comparison
For the Marine Shipping subindustry, KDM Shipping'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.
KDM Shipping Quick Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, KDM Shipping's Quick Ratio distribution charts can be found below:
* The bar in red indicates where KDM Shipping'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.
KDM Shipping's Quick Ratio for the fiscal year that ended in Dec. 2017 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.
KDM Shipping (WAR:KDM) has a Quick Ratio of 11.48 as of Jun. 2018. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on KDM Shipping and its competitors.
Is KDM Shipping's Quick Ratio too high?
KDM Shipping's current Quick Ratio is 11.48. The Transportation industry median Quick Ratio is 1.37. KDM Shipping's value of 11.48 is 738% above this industry median.
How does KDM Shipping's Quick Ratio compare to ESEA and GLBS?
KDM Shipping's Quick Ratio of 11.48 can be compared against companies in the Transportation industry. The industry median Quick Ratio is 1.37. KDM Shipping's value of 11.48 is 738% above this benchmark. 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 Transportation company?
The median Quick Ratio among Transportation companies is 1.37, based on 1,010 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. KDM Shipping's current Quick Ratio of 11.48 is 738% 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 KDM Shipping and its competitors. For the Transportation industry, the median Quick Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDM Shipping's current Quick Ratio is 11.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDM Shipping stock overvalued right now?
KDM Shipping (WAR:KDM) has a current Quick Ratio of 11.48. The current Quick Ratio is 11.48 and 738% above the Transportation industry median of 1.37. 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 KDM Shipping (WAR:KDM), the current Quick Ratio is 11.48 as of Jun. 2018. 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.
KDM Shipping PLC is engaged in the shipping industry. It mainly focuses on the bulk river-sea freight in the Black, Azov and Mediterranean Sea regions. In addition, it is engaged in cargo freight, ship repair, and trading in grain, corn, oil and barley. The principal cargo of the company includes Grain, Metal Scrap, Sunflower seed meal, Bran, Fertilizers, and Cement.
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