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. Indraprastha Gas's quick ratio for the quarter that ended in Dec. 2023 was 0.00.
Indraprastha Gas has a quick ratio of 0.00. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Indraprastha Gas's Quick Ratio or its related term are showing as below:
BOM:532514'
s Quick Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1.2 Max: 1.47
Current: 1.02
During the past 13 years, Indraprastha Gas's highest Quick Ratio was 1.47. The lowest was 0.83. And the median was 1.20.
BOM:532514's Quick Ratio is ranked better than 54.16% of 517
companies
in the Utilities - Regulated industry
Industry Median: 0.97
vs BOM:532514: 1.02
Indraprastha Gas Quick Ratio Historical Data
The historical data trend for Indraprastha Gas'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 Indraprastha Gas's Quick Ratio
For the Utilities - Regulated Gas subindustry, Indraprastha Gas'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.
Indraprastha Gas's Quick Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Indraprastha Gas's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Indraprastha Gas's Quick Ratio falls into.
Indraprastha Gas 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.
Indraprastha Gas's Quick Ratio for the fiscal year that ended in Mar. 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.
Indraprastha Gas (BOM:532514) 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.
Indraprastha Gas Quick Ratio Related Terms
Thank you for viewing the detailed overview of Indraprastha Gas's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Indraprastha Gas (BOM:532514) Business Description
Indraprastha Gas Ltd, or IGL, is an Indian utility company that derives nearly all of its revenue from the sale of natural gas. IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial, and commercial sector customers. Most of the natural gas sold by IGL is in the form of compressed natural gas. CNG is an alternative to fossil fuels that is distributed from IGL's portfolio of fueling stations to power a variety of vehicles. The vast majority of these CNG stations are located in the Delhi and National Capital Regions. IGL distributes a significant amount of natural gas through its network of pipelines in Delhi and the National Capital Region, as well. The customers served by IGL's PNG business are primarily residential consumers.
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