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. RFG Holdings's quick ratio for the quarter that ended in Sep. 2023 was 0.79.
RFG Holdings has a quick ratio of 0.79. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for RFG Holdings's Quick Ratio or its related term are showing as below:
JSE:RFG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.51 Med: 0.69 Max: 0.84
Current: 0.79
During the past 9 years, RFG Holdings's highest Quick Ratio was 0.84. The lowest was 0.51. And the median was 0.69.
JSE:RFG's Quick Ratio is ranked worse than 62.54% of 1906
companies
in the Consumer Packaged Goods industry
Industry Median: 1.03
vs JSE:RFG: 0.79
RFG Holdings Quick Ratio Historical Data
The historical data trend for RFG Holdings'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 RFG Holdings's Quick Ratio
For the Packaged Foods subindustry, RFG Holdings'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.
RFG Holdings's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, RFG Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where RFG Holdings's Quick Ratio falls into.
RFG Holdings 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.
RFG Holdings's Quick Ratio for the fiscal year that ended in Sep. 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.
RFG Holdings (JSE:RFG) 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.
RFG Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of RFG Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
RFG Holdings Ltd is a South Africa based company engaged in supplying fresh, frozen, and convenience meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include, Regional which is the key revenue generating segment, and International.
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