GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » James Hardie Industries PLC (FRA:JHA) » Definitions » Quick Ratio

James Hardie Industries (FRA:JHA) Quick Ratio

: 1.46 (As of Dec. 2023)
View and export this data going back to . Start your Free Trial

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. James Hardie Industries's quick ratio for the quarter that ended in Dec. 2023 was 1.46.

James Hardie Industries has a quick ratio of 1.46. It generally indicates good short-term financial strength.

The historical rank and industry rank for James Hardie Industries's Quick Ratio or its related term are showing as below:

FRA:JHA' s Quick Ratio Range Over the Past 10 Years
Min: 0.46   Med: 0.95   Max: 1.49
Current: 1.46

During the past 13 years, James Hardie Industries's highest Quick Ratio was 1.49. The lowest was 0.46. And the median was 0.95.

FRA:JHA's Quick Ratio is ranked better than
69.33% of 388 companies
in the Building Materials industry
Industry Median: 0.97 vs FRA:JHA: 1.46

James Hardie Industries Quick Ratio Historical Data

The historical data trend for James Hardie Industries'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.

James Hardie Industries Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.90 1.18 0.80 1.10 1.05

James Hardie Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.93 1.05 1.12 1.26 1.46

Competitive Comparison

For the Building Materials subindustry, James Hardie Industries'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.


James Hardie Industries Quick Ratio Distribution

For the Building Materials industry and Basic Materials sector, James Hardie Industries's Quick Ratio distribution charts can be found below:

* The bar in red indicates where James Hardie Industries's Quick Ratio falls into.



James Hardie Industries 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.

James Hardie Industries's Quick Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Quick Ratio (A: Mar. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1004.143-321.483)/651.278
=1.05

James Hardie Industries'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
=(1295.721-294.724)/686.925
=1.46

* 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.


James Hardie Industries  (FRA:JHA) 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.


James Hardie Industries Quick Ratio Related Terms

Thank you for viewing the detailed overview of James Hardie Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


James Hardie Industries (FRA:JHA) Business Description

Traded in Other Exchanges
Address
Harcourt Street, Europa House, 2nd Floor, Harcourt Centre, Dublin, IRL, D02 WR20
James Hardie is a manufacturer of fiber cement-based building products, selling primarily to the residential construction industry. North America is the primary geography, generating about 80% of group earnings. Here, it is the largest manufacturer of fiber cement, which is mainly used for siding. Asia-Pacific businesses in Australia, New Zealand, and the Philippines, as well as Europe, make up the rest of earnings. In 2018, the group acquired Fermacell, a fiber gypsum building products business headquartered in Germany with operations throughout Europe.

James Hardie Industries (FRA:JHA) Headlines

No Headlines