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Deterra Royalties (ASX:DRR) Quick Ratio : 153.21 (As of Dec. 2023)


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What is Deterra Royalties Quick Ratio?

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. Deterra Royalties's quick ratio for the quarter that ended in Dec. 2023 was 153.21.

Deterra Royalties has a quick ratio of 153.21. It generally indicates good short-term financial strength.

The historical rank and industry rank for Deterra Royalties's Quick Ratio or its related term are showing as below:

ASX:DRR' s Quick Ratio Range Over the Past 10 Years
Min: 6.74   Med: 110.2   Max: 211.58
Current: 153.21

During the past 3 years, Deterra Royalties's highest Quick Ratio was 211.58. The lowest was 6.74. And the median was 110.20.

ASX:DRR's Quick Ratio is ranked better than
99.44% of 2672 companies
in the Metals & Mining industry
Industry Median: 1.805 vs ASX:DRR: 153.21

Deterra Royalties Quick Ratio Historical Data

The historical data trend for Deterra Royalties'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.

* Premium members only.

Deterra Royalties Quick Ratio Chart

Deterra Royalties Annual Data
Trend Jun21 Jun22 Jun23
Quick Ratio
6.74 211.58 107.20

Deterra Royalties Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Quick Ratio Get a 7-Day Free Trial 77.14 211.58 113.19 107.20 153.21

Competitive Comparison of Deterra Royalties's Quick Ratio

For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.


Deterra Royalties's Quick Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Deterra Royalties's Quick Ratio falls into.



Deterra Royalties 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.

Deterra Royalties's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Quick Ratio (A: Jun. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(103.773-0)/0.968
=107.20

Deterra Royalties's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(91.311-0)/0.596
=153.21

* 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.


Deterra Royalties  (ASX:DRR) 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.


Deterra Royalties Quick Ratio Related Terms

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Deterra Royalties (ASX:DRR) Business Description

Traded in Other Exchanges
Address
140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000
Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.

Deterra Royalties (ASX:DRR) Headlines