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. Gatos Silver's quick ratio for the quarter that ended in Mar. 2024 was 7.09.
Gatos Silver has a quick ratio of 7.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Gatos Silver's Quick Ratio or its related term are showing as below:
GATO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.45 Med: 3.54 Max: 38.71
Current: 7.09
During the past 12 years, Gatos Silver's highest Quick Ratio was 38.71. The lowest was 0.45. And the median was 3.54.
GATO's Quick Ratio is ranked better than 78.86% of 2678
companies
in the Metals & Mining industry
Industry Median: 1.71
vs GATO: 7.09
Gatos Silver Quick Ratio Historical Data
The historical data trend for Gatos Silver'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 Gatos Silver's Quick Ratio
For the Other Precious Metals & Mining subindustry, Gatos Silver'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.
Gatos Silver's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Gatos Silver's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Gatos Silver's Quick Ratio falls into.
Gatos Silver 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.
Gatos Silver's Quick Ratio for the fiscal year that ended in Dec. 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.
Gatos Silver (NYSE:GATO) 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.
Gatos Silver Quick Ratio Related Terms
Thank you for viewing the detailed overview of Gatos Silver's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Gatos Silver Inc is a development and exploration company. It is focused on the production of Cerro Los Gatos Mine and the further exploration and development of the Los Gatos District, both located in Chihuahua, Mexico. The Los Gatos District consists of 14 mineralized zones, including three identified silver-lead-zinc deposits: the Cerro Los Gatos Mine, the Esther deposit, and the Amapola deposit. The Company's reportable segments are based on the Company's mineral interests and management structure and include Mexico and Corporate segments. The Mexico segment engages in the exploration, development, and operation of the Company's Mexican mineral interests and includes the Company's investment in its LGJV.
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