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. Sumitomo Forestry Co's quick ratio for the quarter that ended in Dec. 2023 was 0.90.
Sumitomo Forestry Co has a quick ratio of 0.90. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Sumitomo Forestry Co's Quick Ratio or its related term are showing as below:
TSE:1911'
s Quick Ratio Range Over the Past 10 Years
Min: 0.84 Med: 1.01 Max: 1.11
Current: 0.9
During the past 13 years, Sumitomo Forestry Co's highest Quick Ratio was 1.11. The lowest was 0.84. And the median was 1.01.
TSE:1911's Quick Ratio is ranked better than 52.83% of 106
companies
in the Homebuilding & Construction industry
Industry Median: 0.845
vs TSE:1911: 0.90
Sumitomo Forestry Co Quick Ratio Historical Data
The historical data trend for Sumitomo Forestry Co'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 Sumitomo Forestry Co's Quick Ratio
For the Residential Construction subindustry, Sumitomo Forestry Co'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.
Sumitomo Forestry Co's Quick Ratio Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry Co's Quick Ratio falls into.
Sumitomo Forestry Co 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.
Sumitomo Forestry Co'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.
Sumitomo Forestry Co (TSE:1911) 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.
Sumitomo Forestry Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sumitomo Forestry Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sumitomo Forestry Co (TSE:1911) Business Description
Sumitomo Forestry Co Ltd is a diversified Japanese company that focuses on timber and building materials as well as residential construction. The company's timber business is one of Japan's leading suppliers of timber and also provides building and structural materials such as flooring and doors. It constructs custom-built single-family housing projects around Japan that use the company's timber materials and design. These two business units provide the majority of the company's revenue. Sumitomo Forestry operates timber and exporting businesses in Southeast Asia, Australia, and North America. It is also involved in forestry management, as it owns forests around Japan and Southeast Asia.
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