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Safaricom (NAI:SCOM) Quick Ratio : 0.46 (As of Mar. 2024)


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What is Safaricom Quick Ratio?

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. Safaricom's quick ratio for the quarter that ended in Mar. 2024 was 0.46.

Safaricom has a quick ratio of 0.46. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Safaricom's Quick Ratio or its related term are showing as below:

NAI:SCOM' s Quick Ratio Range Over the Past 10 Years
Min: 0.44   Med: 0.61   Max: 1.04
Current: 0.46

During the past 13 years, Safaricom's highest Quick Ratio was 1.04. The lowest was 0.44. And the median was 0.61.

NAI:SCOM's Quick Ratio is ranked worse than
85.9% of 390 companies
in the Telecommunication Services industry
Industry Median: 0.95 vs NAI:SCOM: 0.46

Safaricom Quick Ratio Historical Data

The historical data trend for Safaricom'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.

* Premium members only.

Safaricom Quick Ratio Chart

Safaricom Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.83 0.71 0.62 0.49 0.46

Safaricom Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.62 0.54 0.49 0.49 0.46

Competitive Comparison of Safaricom's Quick Ratio

For the Telecom Services subindustry, Safaricom'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.


Safaricom's Quick Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Safaricom's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Safaricom's Quick Ratio falls into.



Safaricom 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.

Safaricom's Quick Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Quick Ratio (A: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(82541.9-4526)/167822.1
=0.46

Safaricom's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(82541.9-4526)/167822.1
=0.46

* 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.


Safaricom  (NAI:SCOM) 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.


Safaricom Quick Ratio Related Terms

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Safaricom (NAI:SCOM) Business Description

Traded in Other Exchanges
N/A
Address
Safaricom House, Waiyaki Way, P.O. Box 66827, Westlands, Nairobi, KEN, 00800
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.

Safaricom (NAI:SCOM) Headlines