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. ADF Group's quick ratio for the quarter that ended in Jan. 2024 was 1.92.
ADF Group has a quick ratio of 1.92. It generally indicates good short-term financial strength.
The historical rank and industry rank for ADF Group's Quick Ratio or its related term are showing as below:
ADFJF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.9 Med: 1.47 Max: 1.92
Current: 1.92
During the past 13 years, ADF Group's highest Quick Ratio was 1.92. The lowest was 0.90. And the median was 1.47.
ADFJF's Quick Ratio is ranked better than 67% of 3024
companies
in the Industrial Products industry
Industry Median: 1.38
vs ADFJF: 1.92
ADF Group Quick Ratio Historical Data
The historical data trend for ADF Group'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 Metal Fabrication subindustry, ADF Group'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.
ADF Group's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, ADF Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where ADF Group's Quick Ratio falls into.
ADF Group 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.
ADF Group's Quick Ratio for the fiscal year that ended in Jan. 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.
ADF Group (OTCPK:ADFJF) 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.
ADF Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of ADF Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ADF Group Inc involves in the design and engineering of connections, fabrication, including industrial coating, and the installation of steel structures and steel built-ups, as well as miscellaneous and architectural metalwork. The company's products and services are intended for the five principal segments of the non-residential construction industry: Office towers and high-rises, Commercial and recreational buildings, Airport facilities, Industrial complexes, and Transport infrastructures. It serves the client base in the non-residential construction industry, such as general contractors, project owners, engineering firms and project architects, and other steel structure fabricators. The company operates in the United States and Canada.
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