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. Cineworld Group's quick ratio for the quarter that ended in Jun. 2022 was 0.13.
Cineworld Group has a quick ratio of 0.13. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Cineworld Group's Quick Ratio or its related term are showing as below:
LSE:CINE's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.45 * Ranked among companies with meaningful Quick Ratio only.
Cineworld Group Quick Ratio Historical Data
The historical data trend for Cineworld Group'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 Cineworld Group's Quick Ratio
For the Entertainment subindustry, Cineworld Group'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.
Cineworld Group's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cineworld Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cineworld Group's Quick Ratio falls into.
Cineworld Group 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.
Cineworld Group's Quick Ratio for the fiscal year that ended in Dec. 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.
Cineworld Group (LSE:CINE) 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.
Cineworld Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cineworld Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. Its business segments are the U.S., U.K., & Ireland and the rest of the world (ROW). Within each segment, it operates theaters through different brands. In the U.S., Cineworld owns cinema brands Regal, United Artists, and Edwards theaters. They operate out of Cineworld and Picturehouse in the U.K. and Ireland. Cineworld also owns Cinema City in Central and Eastern Europe and Yes Planet and Rav-Chen in Israel for its ROW segment. The company generates revenue through ticket sales and food, beverage, and merchandise sales. It also earns additional revenue through retail and screen advertising and property market and development. The company generates most of its revenue in the U.S.
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