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. Hochtief AG's quick ratio for the quarter that ended in Dec. 2023 was 1.09.
Hochtief AG has a quick ratio of 1.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Hochtief AG's Quick Ratio or its related term are showing as below:
HOCFF'
s Quick Ratio Range Over the Past 10 Years
Min: 0.97 Med: 1.07 Max: 1.24
Current: 1.09
During the past 13 years, Hochtief AG's highest Quick Ratio was 1.24. The lowest was 0.97. And the median was 1.07.
HOCFF's Quick Ratio is ranked worse than 63.21% of 1677
companies
in the Construction industry
Industry Median: 1.28
vs HOCFF: 1.09
Hochtief AG Quick Ratio Historical Data
The historical data trend for Hochtief 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.
Competitive Comparison of Hochtief AG's Quick Ratio
For the Engineering & Construction subindustry, Hochtief 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.
Hochtief AG's Quick Ratio Distribution in the Construction Industry
For the Construction industry and Industrials sector, Hochtief AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Hochtief AG's Quick Ratio falls into.
Hochtief 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.
Hochtief AG's Quick Ratio for the fiscal year that ended in Dec. 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.
Hochtief AG (OTCPK:HOCFF) 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.
Hochtief AG Quick Ratio Related Terms
Thank you for viewing the detailed overview of Hochtief AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.
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