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. HELLA GmbH KGaA's quick ratio for the quarter that ended in Sep. 2023 was 0.91.
HELLA GmbH KGaA has a quick ratio of 0.91. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for HELLA GmbH KGaA's Quick Ratio or its related term are showing as below:
HLKHF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.91 Med: 1.44 Max: 1.78
Current: 0.91
During the past 11 years, HELLA GmbH KGaA's highest Quick Ratio was 1.78. The lowest was 0.91. And the median was 1.44.
HLKHF's Quick Ratio is ranked worse than 58.59% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs HLKHF: 0.91
HELLA GmbH KGaA Quick Ratio Historical Data
The historical data trend for HELLA GmbH KGaA'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 HELLA GmbH KGaA's Quick Ratio
For the Auto Parts subindustry, HELLA GmbH KGaA'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.
HELLA GmbH KGaA's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, HELLA GmbH KGaA's Quick Ratio distribution charts can be found below:
* The bar in red indicates where HELLA GmbH KGaA's Quick Ratio falls into.
HELLA GmbH KGaA 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.
HELLA GmbH KGaA's Quick Ratio for the fiscal year that ended in May. 2021 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.
HELLA GmbH KGaA (OTCPK:HLKHF) 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.
HELLA GmbH KGaA Quick Ratio Related Terms
Thank you for viewing the detailed overview of HELLA GmbH KGaA's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
HELLA GmbH KGaA (HELLA GmbH KGaA) Business Description
HELLA GmbH & Co KGaA is a manufacturer of lighting and electronic components and systems for the automotive industry. The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles. Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe. The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments which are Lighting, Electronics and Lifecycle Solutions. The company generates majority of the revenue from Lighting segment.
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