SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'quick_ratio' Fortum Oyj (LTS:0HAH) Quick Ratio
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Fortum Oyj (LTS:0HAH) Quick Ratio

: 1.86 (As of Dec. 2023)
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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. Fortum Oyj's quick ratio for the quarter that ended in Dec. 2023 was 1.86.

Fortum Oyj has a quick ratio of 1.86. It generally indicates good short-term financial strength.

The historical rank and industry rank for Fortum Oyj's Quick Ratio or its related term are showing as below:

LTS:0HAH' s Quick Ratio Range Over the Past 10 Years
Min: 0.98   Med: 1.91   Max: 4.59
Current: 1.86

During the past 13 years, Fortum Oyj's highest Quick Ratio was 4.59. The lowest was 0.98. And the median was 1.91.

LTS:0HAH's Quick Ratio is ranked better than
72.39% of 431 companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.21 vs LTS:0HAH: 1.86

Fortum Oyj Quick Ratio Historical Data

The historical data trend for Fortum Oyj'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.

Fortum Oyj Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 1.02 0.98 1.04 1.86

Fortum Oyj 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 1.04 1.47 1.94 2.00 1.86

Competitive Comparison

For the Utilities - Renewable subindustry, Fortum Oyj'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.


Fortum Oyj Quick Ratio Distribution

For the Utilities - Independent Power Producers industry and Utilities sector, Fortum Oyj's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Fortum Oyj's Quick Ratio falls into.



Fortum Oyj 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.

Fortum Oyj's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(7349-452)/3709
=1.86

Fortum Oyj'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
=(7349-452)/3709
=1.86

* 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.


Fortum Oyj  (LTS:0HAH) 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.


Fortum Oyj Quick Ratio Related Terms

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Fortum Oyj (LTS:0HAH) Business Description

Address
Keilalahdentie 2-4, CD Building, P.O. Box 100, Espoo, FIN, FI-00048
Fortum Oyj is a Finnish energy company that operates power plants, which use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, City Solutions, Consumer Solutions, Russia, and Other.

Fortum Oyj (LTS:0HAH) Headlines

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