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. Nitto Denko's quick ratio for the quarter that ended in Mar. 2024 was 2.81.
Nitto Denko has a quick ratio of 2.81. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nitto Denko's Quick Ratio or its related term are showing as below:
TSE:6988'
s Quick Ratio Range Over the Past 10 Years
Min: 2.16 Med: 2.81 Max: 3.08
Current: 2.81
During the past 13 years, Nitto Denko's highest Quick Ratio was 3.08. The lowest was 2.16. And the median was 2.81.
TSE:6988's Quick Ratio is ranked better than 77.87% of 1568
companies
in the Chemicals industry
Industry Median: 1.4
vs TSE:6988: 2.81
Nitto Denko Quick Ratio Historical Data
The historical data trend for Nitto Denko'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 Nitto Denko's Quick Ratio
For the Specialty Chemicals subindustry, Nitto Denko'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.
Nitto Denko's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nitto Denko's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nitto Denko's Quick Ratio falls into.
Nitto Denko 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.
Nitto Denko's Quick Ratio for the fiscal year that ended in Mar. 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.
Nitto Denko (TSE:6988) 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.
Nitto Denko Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nitto Denko's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nitto Denko Corp manufactures and sells a variety of industrial and electronics products. The company sells tape products, which include masking tape for painting and printed-circuit boards, double sided tapes, electrical tape, and sealant materials used in the construction industry. Nitto Denko also sells film products, which include surface protective film, fluoroplastic films used to seal pipes and air filters, and porous film that allows air to pass through but seals water and other liquids. The firm also produces electronics, which include flexible printed circuit boards for smartphones and tablets, and medical products such as drug delivery patches and adhesive sheets.
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