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. Ruchira Papers's quick ratio for the quarter that ended in Mar. 2024 was 1.58.
Ruchira Papers has a quick ratio of 1.58. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ruchira Papers's Quick Ratio or its related term are showing as below:
BOM:532785'
s Quick Ratio Range Over the Past 10 Years
Min: 0.58 Med: 0.83 Max: 1.58
Current: 1.58
During the past 13 years, Ruchira Papers's highest Quick Ratio was 1.58. The lowest was 0.58. And the median was 0.83.
BOM:532785's Quick Ratio is ranked better than 67.69% of 294
companies
in the Forest Products industry
Industry Median: 1.055
vs BOM:532785: 1.58
Ruchira Papers Quick Ratio Historical Data
The historical data trend for Ruchira Papers'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 Ruchira Papers's Quick Ratio
For the Paper & Paper Products subindustry, Ruchira Papers'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.
Ruchira Papers's Quick Ratio Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Ruchira Papers's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ruchira Papers's Quick Ratio falls into.
Ruchira Papers 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.
Ruchira Papers'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.
Ruchira Papers (BOM:532785) 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.
Ruchira Papers Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ruchira Papers's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ruchira Papers Ltd is engaged in the paper manufacturing business. The company is engaged in the manufacturing of kraft paper, writing, and printing paper. Its white writing and printing paper are used in the fabrication of notebooks and writing material while kraft paper finds its application in the packaging industry especially for making boxes/cartons and for other packaging requirements. The coloured paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children's colouring books, coloured copier paper and bill books. Geographically, it derives a majority of its revenue from India. The company operates in only one main segment, which is the manufacturing of paper.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:532785 has been successfully added to your 