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. PTB Group's quick ratio for the quarter that ended in Jun. 2022 was 1.34.
PTB Group has a quick ratio of 1.34. It generally indicates good short-term financial strength.
The historical rank and industry rank for PTB Group's Quick Ratio or its related term are showing as below:
ASX:PTB's Quick Ratio is not ranked *
in the Aerospace & Defense industry.
Industry Median: 1.095 * Ranked among companies with meaningful Quick Ratio only.
PTB Group Quick Ratio Historical Data
The historical data trend for PTB Group'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.
For the Aerospace & Defense subindustry, PTB Group'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.
PTB Group's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, PTB Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where PTB Group's Quick Ratio falls into.
PTB Group 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.
PTB Group's Quick Ratio for the fiscal year that ended in Jun. 2022 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.
PTB Group (ASX:PTB) 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.
PTB Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of PTB Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
PTB Group Ltd is engaged in the aviation business in Brisbane, Australia. It operates in business segments that are PTB, which specializes in PT6 and TPE331 Turboprop engines; PT USA, which specializes in PT6 Turboprop engines, it repairs and sells PT6 engines, maintains related engines under contract, and trades in related engine parts; PT Leasing, which is an aircraft and engine owner and leases aircraft and engines to operators under both operating and finance leases; IAP, which covers the operations of the IAP Group Australia Pty Ltd trading in aircraft, jet aircraft engines, airframes, and related parts. The PT USA segment generates maximum revenue for the company.
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