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. Empire Co's quick ratio for the quarter that ended in Jan. 2024 was 0.33.
Empire Co has a quick ratio of 0.33. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Empire Co's Quick Ratio or its related term are showing as below:
TSX:EMP.A'
s Quick Ratio Range Over the Past 10 Years
Min: 0.31 Med: 0.38 Max: 0.62
Current: 0.33
During the past 13 years, Empire Co's highest Quick Ratio was 0.62. The lowest was 0.31. And the median was 0.38.
TSX:EMP.A's Quick Ratio is ranked worse than 87.66% of 316
companies
in the Retail - Defensive industry
Industry Median: 0.89
vs TSX:EMP.A: 0.33
Empire Co Quick Ratio Historical Data
The historical data trend for Empire 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.
For the Grocery Stores subindustry, Empire 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.
Empire Co's Quick Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Empire Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Empire Co's Quick Ratio falls into.
Empire 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.
Empire Co's Quick Ratio for the fiscal year that ended in Apr. 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.
Empire Co (TSX:EMP.A) 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.
Empire Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Empire Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiary Sobeys and represents nearly all of the company's income. This segment owns, affiliates, or franchises more than 1,500 stores in 10 provinces, under retail banners including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Lawton's Drug Stores, and multiple retail fuel locations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership.
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