5E Advanced Materials has a quick ratio of 0.74. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for 5E Advanced Materials's Quick Ratio or its related term are showing as below:
FEAM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.15 Med: 1.96 Max: 24.31
Current: 0.74
During the past 4 years, 5E Advanced Materials's highest Quick Ratio was 24.31. The lowest was 0.15. And the median was 1.96.
FEAM's Quick Ratio is ranked worse than 80.92% of 1572
companies
in the Chemicals industry
Industry Median: 1.35
vs FEAM: 0.74
5E Advanced Materials Quick Ratio Historical Data
The historical data trend for 5E Advanced Materials'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 5E Advanced Materials's Quick Ratio
For the Specialty Chemicals subindustry, 5E Advanced Materials'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.
5E Advanced Materials's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, 5E Advanced Materials's Quick Ratio distribution charts can be found below:
* The bar in red indicates where 5E Advanced Materials's Quick Ratio falls into.
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.
5E Advanced Materials's Quick Ratio for the fiscal year that ended in Jun. 2024 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.
5E Advanced Materials (NAS:FEAM) 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.
5E Advanced Materials Quick Ratio Related Terms
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5E Advanced Materials Inc is an exploration stage company focused on becoming a vertically integrated supplier of specialty boron and boron derivative materials whose mission is to enable decarbonization, increase food security, and ensure domestic supply of critical materials. It has a project located in southern California underpinned by a mineral resource that includes boron and lithium, with the boron being contained in a conventional boron mineral known as colemanite. The company seeks to extract and process the minerals into boric acid, boron materials, lithium carbonate, and potentially other co-products on a commercial scale.
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