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. Remy Cointreau's quick ratio for the quarter that ended in Sep. 2024 was 0.42.
Remy Cointreau has a quick ratio of 0.42. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Remy Cointreau's Quick Ratio or its related term are showing as below:
XPAR:RCO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.52 Max: 0.82
Current: 0.42
During the past 13 years, Remy Cointreau's highest Quick Ratio was 0.82. The lowest was 0.35. And the median was 0.52.
XPAR:RCO's Quick Ratio is ranked worse than 83.18% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 0.905
vs XPAR:RCO: 0.42
Remy Cointreau Quick Ratio Historical Data
The historical data trend for Remy Cointreau'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 Remy Cointreau's Quick Ratio
For the Beverages - Wineries & Distilleries subindustry, Remy Cointreau'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.
Remy Cointreau's Quick Ratio Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Remy Cointreau's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Remy Cointreau's Quick Ratio falls into.
Remy Cointreau 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.
Remy Cointreau's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Remy Cointreau (XPAR:RCO) 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.
Remy Cointreau Quick Ratio Related Terms
Thank you for viewing the detailed overview of Remy Cointreau's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Remy Cointreau is the world's second-largest distiller of cognac by volume, with a 15.8% global volume share in 2022, according to Euromonitor. Cognac represented 72% of Remy's sales and 90% of EBIT in the same year. The remainder of Remy's portfolio is made up of much smaller group-owned brands, including Cointreau orange liqueur, Metaxa Greek spirit, Mount Gay rum, Bruichladdich single malt scotch, The Botanist gin, Hautes Glaces French whiskey, and Westland American whiskey. The company also distributes third-party brands and, in 2023, entered the fragrance business. Remy is controlled by the Andromede family, which owns 41% equity interest and consolidates the business in the Andromede Group. The Cointreau family owns a further 27%, and 41% of the equity is free float.
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