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. Whitehaven Coal's quick ratio for the quarter that ended in Dec. 2023 was 3.68.
Whitehaven Coal has a quick ratio of 3.68. It generally indicates good short-term financial strength.
The historical rank and industry rank for Whitehaven Coal's Quick Ratio or its related term are showing as below:
FRA:WC2'
s Quick Ratio Range Over the Past 10 Years
Min: 0.68 Med: 0.9 Max: 3.68
Current: 3.68
During the past 13 years, Whitehaven Coal's highest Quick Ratio was 3.68. The lowest was 0.68. And the median was 0.90.
FRA:WC2's Quick Ratio is ranked better than 71.51% of 179
companies
in the Other Energy Sources industry
Industry Median: 1.44
vs FRA:WC2: 3.68
Whitehaven Coal Quick Ratio Historical Data
The historical data trend for Whitehaven Coal'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 Whitehaven Coal's Quick Ratio
For the Thermal Coal subindustry, Whitehaven Coal'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.
Whitehaven Coal's Quick Ratio Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Whitehaven Coal's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Whitehaven Coal's Quick Ratio falls into.
Whitehaven Coal 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.
Whitehaven Coal's Quick Ratio for the fiscal year that ended in Jun. 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.
Whitehaven Coal (FRA:WC2) 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.
Whitehaven Coal Quick Ratio Related Terms
Thank you for viewing the detailed overview of Whitehaven Coal's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Whitehaven Coal is a large Australian independent thermal and semisoft metallurgical coal miner with mines in the Gunnedah Basin, New South Wales. It also owns the large Vickery and Winchester South deposits in New South Wales and Queensland, respectively. Coal is railed to ports in Newcastle for export to Asian customers. It has agreed to buy Blackwater and Daunia, two coking coal mines in Queensland, from BHP and Mitsubishi, effective mid-2024. Along with expanded production at Maules Creek and Narrabri, this should see its share of salable coal production approach 36 million metric tons from fiscal 2028, from about 13 million in fiscal 2023. Development of Vickery could see around 7 million metric tons of extra equity production, with first output likely from about 2025 in our view.
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