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POSCO Holdings Quick Ratio

: 1.48 (As of Mar. 2022)
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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. POSCO Holdings's quick ratio for the quarter that ended in Mar. 2022 was 1.48.

POSCO Holdings has a quick ratio of 1.48. It generally indicates good short-term financial strength.

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

PKX' s Quick Ratio Range Over the Past 10 Years
Min: 0.82   Med: 1.14   Max: 3.7
Current: 1.48

During the past 13 years, POSCO Holdings's highest Quick Ratio was 3.70. The lowest was 0.82. And the median was 1.14.

PKX's Quick Ratio is ranked better than
73.4% of 594 companies
in the Steel industry
Industry Median: 0.96 vs PKX: 1.48

POSCO Holdings Quick Ratio Historical Data

The historical data trend for POSCO Holdings'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.

POSCO Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.08 1.13 1.44 1.56 1.47

POSCO Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 1.60 1.62 1.64 1.47 1.48

Competitive Comparison

For the Steel subindustry, POSCO Holdings'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.

   

POSCO Holdings Quick Ratio Distribution

For the Steel industry and Basic Materials sector, POSCO Holdings's Quick Ratio distribution charts can be found below:

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



POSCO Holdings 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.

POSCO Holdings's Quick Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Quick Ratio (A: Dec. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(40054.376806707-13596.204401585)/17967.39824262
=1.47

POSCO Holdings's Quick Ratio for the quarter that ended in Mar. 2022 is calculated as

Quick Ratio (Q: Mar. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(41716.134346416-13170.078918555)/19311.835801045
=1.48

* 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.


POSCO Holdings  (NYSE:PKX) 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.


POSCO Holdings Quick Ratio Related Terms

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POSCO Holdings Business Description

POSCO Holdings logo
Address
POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, KOR, 06194
POSCO Holdings Inc is the largest steel producer in South Korea and one of the top steel producers globally. It mainly produces flat steel and stainless steel from its two integrated steel facilities. It is exposed to the auto, shipbuilding, home appliance, engineering, and machinery industries. Posco controls around 40% of South Korean domestic market share and exports around 45%-50% of its steel products overseas, mainly to Asian countries. Through diversification, around 15%-20% of its revenue comes from non-steel and non-trading-related businesses.

POSCO Holdings Headlines

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