Oriental Aromatics has a quick ratio of 0.90. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Oriental Aromatics's Quick Ratio or its related term are showing as below:
BOM:500078'
s Quick Ratio Range Over the Past 10 Years
Min: 0.67 Med: 0.96 Max: 1.76
Current: 0.9
During the past 13 years, Oriental Aromatics's highest Quick Ratio was 1.76. The lowest was 0.67. And the median was 0.96.
BOM:500078's Quick Ratio is ranked worse than 73.37% of 1562
companies
in the Chemicals industry
Industry Median: 1.4
vs BOM:500078: 0.90
Oriental Aromatics Quick Ratio Historical Data
The historical data trend for Oriental Aromatics'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 Oriental Aromatics's Quick Ratio
For the Specialty Chemicals subindustry, Oriental Aromatics'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.
Oriental Aromatics's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Oriental Aromatics's Quick Ratio falls into.
Oriental Aromatics 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.
Oriental Aromatics'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.
Oriental Aromatics (BOM:500078) 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.
Oriental Aromatics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Oriental Aromatics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Oriental Aromatics (BOM:500078) Business Description
Oriental Aromatics Ltd is Indian based company engaged in the business of manufacture of fine chemicals along with its principal products and services include Perfumery Chemicals, and Camphor and Isoborneol. The organization is also holds manufacturing and selling of camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals and fragrance chemical intermediaries. The firm offers a range of products, which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals and specialty chemicals. The primary segment of the company is in the business of manufacture of fine chemicals. It operates in two geographical segments: Domestic and Export. The company made majority of its revenue within operations in India.
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