Alcoa (AAPRB.PFD) Quick Ratio

: 1.08 (As of Sep. 2016)

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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. Alcoa's quick ratio for the quarter that ended in Sep. 2016 was 1.08.

Alcoa has a quick ratio of 1.08. It generally indicates good short-term financial strength.

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

AAPRB.PFD' s Quick Ratio Range Over the Past 10 Years
Min: 0.61 Med: 0.9 Max: 1.47
Current: 1.08

During the past 13 years, Alcoa's highest Quick Ratio was 1.47. The lowest was 0.61. And the median was 0.90.

AAPRB.PFD's Quick Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 1.81 vs AAPRB.PFD: 1.08

Alcoa Quick Ratio Historical Data

The historical data trend for Alcoa'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.

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Quick Ratio

0.80

0.82

0.70

0.87

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Quick Ratio																0.98	0.87	0.74	0.85	1.08

Competitive Comparison

For the Aluminum subindustry, Alcoa'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.

Alcoa Quick Ratio Distribution

For the Metals & Mining industry and Basic Materials sector, Alcoa's Quick Ratio distribution charts can be found below:

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

Alcoa 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.

Alcoa's Quick Ratio for the fiscal year that ended in Dec. 2015 is calculated as

Quick Ratio (A: Dec. 2015 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(7953	-	3442)	/	5211
	=	0.87

Alcoa's Quick Ratio for the quarter that ended in Sep. 2016 is calculated as

Quick Ratio (Q: Sep. 2016 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(9368	-	3455)	/	5500
	=	1.08

Alcoa (NYSE:AAPRB.PFD) 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.

Alcoa Quick Ratio Related Terms

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Alcoa (AAPRB.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (NYSE:AAPRB.PFD) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.