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GEA Group AG Quick Ratio

: 1.00 (As of Jun. 2021)
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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. GEA Group AG's quick ratio for the quarter that ended in Jun. 2021 was 1.00.

GEA Group AG has a quick ratio of 1.00. It generally indicates good short-term financial strength.

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

OTCPK:GEAGF' s Quick Ratio Range Over the Past 10 Years
Min: 0.6   Med: 0.97   Max: 1.54
Current: 1

0.6
1.54

During the past 13 years, GEA Group AG's highest Quick Ratio was 1.54. The lowest was 0.60. And the median was 0.97.

OTCPK:GEAGF's Quick Ratio is ranked lower than
80% of the 297 Companies
in the Industrial Products industry.

( Industry Median: 1.21 vs. OTCPK:GEAGF: 1.00 )

GEA Group AG Quick Ratio Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.31 0.93 1.02 0.96 1.05

GEA Group AG Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 0.97 1.02 1.05 1.02 1.00

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

   

GEA Group AG Quick Ratio Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Quick Ratio distribution charts can be found below:

* The bar in red indicates where GEA Group AG's Quick Ratio falls into.



GEA Group AG 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.

GEA Group AG's Quick Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(3390.7141119221-679.10218978102)/2586.103406326
=1.05

GEA Group AG's Quick Ratio for the quarter that ended in Jun. 2021 is calculated as

Quick Ratio (Q: Jun. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(3310.4638554217-839.16024096386)/2480.2253012048
=1.00

* 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.


GEA Group AG  (OTCPK:GEAGF) 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.


GEA Group AG Quick Ratio Related Terms

Thank you for viewing the detailed overview of GEA Group AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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