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. Gujarat Hy-Spin's quick ratio for the quarter that ended in Mar. 2024 was 0.63.
Gujarat Hy-Spin has a quick ratio of 0.63. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Gujarat Hy-Spin's Quick Ratio or its related term are showing as below:
BOM:540938'
s Quick Ratio Range Over the Past 10 Years
Min: 0.63 Med: 0.73 Max: 1.04
Current: 0.63
During the past 12 years, Gujarat Hy-Spin's highest Quick Ratio was 1.04. The lowest was 0.63. And the median was 0.73.
BOM:540938's Quick Ratio is ranked worse than 74.46% of 1073
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.05
vs BOM:540938: 0.63
Gujarat Hy-Spin Quick Ratio Historical Data
The historical data trend for Gujarat Hy-Spin'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 Gujarat Hy-Spin's Quick Ratio
For the Textile Manufacturing subindustry, Gujarat Hy-Spin'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.
Gujarat Hy-Spin's Quick Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gujarat Hy-Spin's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Gujarat Hy-Spin's Quick Ratio falls into.
Gujarat Hy-Spin 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.
Gujarat Hy-Spin'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.
Gujarat Hy-Spin (BOM:540938) 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.
Gujarat Hy-Spin Quick Ratio Related Terms
Thank you for viewing the detailed overview of Gujarat Hy-Spin's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Gujarat Hy-Spin Ltd operates in the textile industry. Principally, it is engaged in the business of manufacturing cotton yarns as well as trading in cotton and other related items. In addition, it also produces ring yarns. The company sells cotton yarns to dealers who market it to other industrial units for weaving and other purposes. Its products comprise cotton bales, cotton waste, cotton yarn, raw cotton, wash oil, cotton seeds, and others. The company generates maximum revenue through the sale of its cotton yarn product.
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