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. Shimamura Co's quick ratio for the quarter that ended in Feb. 2024 was 5.52.
Shimamura Co has a quick ratio of 5.52. It generally indicates good short-term financial strength.
The historical rank and industry rank for Shimamura Co's Quick Ratio or its related term are showing as below:
TSE:8227'
s Quick Ratio Range Over the Past 10 Years
Min: 3.2 Med: 4.56 Max: 5.52
Current: 5.52
During the past 13 years, Shimamura Co's highest Quick Ratio was 5.52. The lowest was 3.20. And the median was 4.56.
TSE:8227's Quick Ratio is ranked better than 95.62% of 1119
companies
in the Retail - Cyclical industry
Industry Median: 0.88
vs TSE:8227: 5.52
Shimamura Co Quick Ratio Historical Data
The historical data trend for Shimamura 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 Shimamura Co's Quick Ratio
For the Apparel Retail subindustry, Shimamura 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.
Shimamura Co's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Shimamura Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Shimamura Co's Quick Ratio falls into.
Shimamura 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.
Shimamura Co's Quick Ratio for the fiscal year that ended in Feb. 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.
Shimamura Co (TSE:8227) 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.
Shimamura Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Shimamura Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Shimamura Co Ltd is a Japanese apparel retailer. Its core business is Fashion Center Temura, which has over 1,000 stores and sells items for families, primarily to housewives in their twenties to fifties. Fashion Center Temura focuses on low price private brands. Stores are in residential areas in the suburbs and in large cities, including Tokyo and Osaka. Shimamura has more than 500 stores under other brand names that include Casual and Shoes Avel, Baby/Chilren's Goods Birthday, Chambre, and Divero. The company's stores are primarily in Japan, but it has some brands in Taiwan and Shanghai.
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