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. SDC Techmedia's quick ratio for the quarter that ended in Sep. 2023 was 4.31.
SDC Techmedia has a quick ratio of 4.31. It generally indicates good short-term financial strength.
The historical rank and industry rank for SDC Techmedia's Quick Ratio or its related term are showing as below:
BOM:535647'
s Quick Ratio Range Over the Past 10 Years
Min: 1.92 Med: 5.38 Max: 27.17
Current: 4.31
During the past 12 years, SDC Techmedia's highest Quick Ratio was 27.17. The lowest was 1.92. And the median was 5.38.
BOM:535647's Quick Ratio is ranked better than 87.73% of 1051
companies
in the Media - Diversified industry
Industry Median: 1.44
vs BOM:535647: 4.31
SDC Techmedia Quick Ratio Historical Data
The historical data trend for SDC Techmedia'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 SDC Techmedia's Quick Ratio
For the Entertainment subindustry, SDC Techmedia'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.
SDC Techmedia's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, SDC Techmedia's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SDC Techmedia's Quick Ratio falls into.
SDC Techmedia 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.
SDC Techmedia's Quick Ratio for the fiscal year that ended in Mar. 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.
SDC Techmedia (BOM:535647) 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.
SDC Techmedia Quick Ratio Related Terms
Thank you for viewing the detailed overview of SDC Techmedia's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SDC Techmedia Ltd operates in the business of media and event management. It is also involved in the reproduction of recorded media. Its services are to aggregate and market audio or video and movie contents of various languages in the local and international market, to acquire old movie rights, dub in a range of languages and market to various television channels, and to produce animation films or short movies or documentary movies. The firm also produces animation movies and television serials, and movies, leasing and renting of 4k Projectors to the Theaters, Cinema Halls and Multiplexes. It generates revenue based on the functioning of Theaters, Cinema Halls & Multiplexes in the State of Tamil Nadu and other cities of Southern States of India.
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