Kumho Petro Chemical has a quick ratio of 1.17. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kumho Petro Chemical's Quick Ratio or its related term are showing as below:
XKRX:011785'
s Quick Ratio Range Over the Past 10 Years
Min: 0.34 Med: 0.58 Max: 1.32
Current: 1.17
During the past 13 years, Kumho Petro Chemical's highest Quick Ratio was 1.32. The lowest was 0.34. And the median was 0.58.
XKRX:011785's Quick Ratio is ranked worse than 59.05% of 1563
companies
in the Chemicals industry
Industry Median: 1.41
vs XKRX:011785: 1.17
Kumho Petro Chemical Quick Ratio Historical Data
The historical data trend for Kumho Petro Chemical'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 Kumho Petro Chemical's Quick Ratio
For the Specialty Chemicals subindustry, Kumho Petro Chemical'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.
Kumho Petro Chemical's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kumho Petro Chemical's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kumho Petro Chemical's Quick Ratio falls into.
Kumho Petro Chemical 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.
Kumho Petro Chemical'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.
Kumho Petro Chemical (XKRX:011785) 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.
Kumho Petro Chemical Quick Ratio Related Terms
Thank you for viewing the detailed overview of Kumho Petro Chemical's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kumho Petro Chemical (XKRX:011785) Business Description
Kumho Petro Chemical Ltd is a manufacturer of synthetic rubbers, and does business in synthetic resins, specialty chemicals, electronic materials, nanocarbon, energy, and building materials. The synthetic rubber business constitutes the largest portion of the company's revenue, and its products are applied to tires, shoes, auto parts, and other industrial applications. Kumho's main customers, under the rubber segment, are global tire manufacturers. Second to the rubber business in revenue, the synthetic resins business manufactures products used in auto parts, home appliances, beverage containers, and a host of other products. The company's revenue is largely derived from international exports, but the remainder of sales are executed in Korea.
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