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. Imperial Oil's quick ratio for the quarter that ended in Dec. 2023 was 0.81.
Imperial Oil has a quick ratio of 0.81. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Imperial Oil's Quick Ratio or its related term are showing as below:
TSX:IMO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.35 Med: 0.85 Max: 1.08
Current: 0.81
During the past 13 years, Imperial Oil's highest Quick Ratio was 1.08. The lowest was 0.35. And the median was 0.85.
TSX:IMO's Quick Ratio is ranked worse than 67.07% of 1075
companies
in the Oil & Gas industry
Industry Median: 1.11
vs TSX:IMO: 0.81
Imperial Oil Quick Ratio Historical Data
The historical data trend for Imperial Oil'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 Imperial Oil's Quick Ratio
For the Oil & Gas Integrated subindustry, Imperial Oil'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.
Imperial Oil's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Imperial Oil's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Imperial Oil's Quick Ratio falls into.
Imperial Oil 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.
Imperial Oil'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.
Imperial Oil (TSX:IMO) 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.
Imperial Oil Quick Ratio Related Terms
Thank you for viewing the detailed overview of Imperial Oil's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Imperial Oil is one of Canada's largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2020. The company estimates that it holds 5.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d. The Upstream segment operates to produce crude oil and its equivalent, and natural gas. The Downstream segment operates to refine crude oil into petroleum products. The Chemical segment manufactures hydrocarbon-based chemicals and chemical products.
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