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. Motorcar Parts of America's quick ratio for the quarter that ended in Jun. 2022 was 0.30.
Motorcar Parts of America has a quick ratio of 0.30. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Motorcar Parts of America's Quick Ratio or its related term are showing as below:
MPAA'
s Quick Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.48 Max: 3.25
Current: 0.3
During the past 13 years, Motorcar Parts of America's highest Quick Ratio was 3.25. The lowest was 0.17. And the median was 0.48.
MPAA's Quick Ratio is ranked worse than 95.96% of 1238
companies
in the Vehicles & Parts industry
Industry Median: 1.07
vs MPAA: 0.30
Motorcar Parts of America Quick Ratio Historical Data
The historical data trend for Motorcar Parts of America'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.
Motorcar Parts of America Annual Data
Trend
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Quick Ratio
0.60
0.40
0.55
0.37
0.36
Motorcar Parts of America Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Quick Ratio
0.36
0.36
0.30
0.36
0.30
Competitive Comparison
For the Auto Parts subindustry, Motorcar Parts of America'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.
Motorcar Parts of America Quick Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Motorcar Parts of America's Quick Ratio falls into.
Motorcar Parts of America 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.
Motorcar Parts of America's Quick Ratio for the fiscal year that ended in Mar. 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.
Motorcar Parts of America (NAS:MPAA) 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.
Motorcar Parts of America Quick Ratio Related Terms
Thank you for viewing the detailed overview of Motorcar Parts of America's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Motorcar Parts of America Inc is a US-based manufacturer, remanufacturer, and distributor of aftermarket automotive and light truck applications. It manufactures and distributes heavy-duty truck and industrial and agricultural application parts. It produces starter engines, alternators, hub assemblies, bearings, and master cylinders. The company supplies its products to the automotive aftermarket either under its own brands, as part of a private-label service, or to warranty replacement programs of automobile manufacturers. It primarily sells rotating electrical products, wheel hub products, brake master cylinders products in the US, of which a majority of the revenue is derived from the sales of rotating electrical products.
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