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. New Hope's quick ratio for the quarter that ended in Jan. 2024 was 3.66.
New Hope has a quick ratio of 3.66. It generally indicates good short-term financial strength.
The historical rank and industry rank for New Hope's Quick Ratio or its related term are showing as below:
NHPEF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.78 Med: 2.52 Max: 16.33
Current: 3.66
During the past 13 years, New Hope's highest Quick Ratio was 16.33. The lowest was 0.78. And the median was 2.52.
NHPEF's Quick Ratio is ranked better than 70.39% of 179
companies
in the Other Energy Sources industry
Industry Median: 1.46
vs NHPEF: 3.66
New Hope Quick Ratio Historical Data
The historical data trend for New Hope'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.
For the Thermal Coal subindustry, New Hope'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.
New Hope's Quick Ratio Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, New Hope's Quick Ratio distribution charts can be found below:
* The bar in red indicates where New Hope's Quick Ratio falls into.
New Hope 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.
New Hope's Quick Ratio for the fiscal year that ended in Jul. 2023 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.
New Hope (OTCPK:NHPEF) 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.
New Hope Quick Ratio Related Terms
Thank you for viewing the detailed overview of New Hope's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2027, up from around 8 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 15% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.
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