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. Ares Asia's quick ratio for the quarter that ended in Sep. 2023 was 2.48.
Ares Asia has a quick ratio of 2.48. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ares Asia's Quick Ratio or its related term are showing as below:
HKSE:00645'
s Quick Ratio Range Over the Past 10 Years
Min: 1.15 Med: 1.47 Max: 26.21
Current: 2.48
During the past 13 years, Ares Asia's highest Quick Ratio was 26.21. The lowest was 1.15. And the median was 1.47.
HKSE:00645's Quick Ratio is ranked better than 66.11% of 180
companies
in the Other Energy Sources industry
Industry Median: 1.545
vs HKSE:00645: 2.48
Ares Asia Quick Ratio Historical Data
The historical data trend for Ares Asia'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.
For the Thermal Coal subindustry, Ares Asia'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.
Ares Asia's Quick Ratio Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Ares Asia's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ares Asia's Quick Ratio falls into.
Ares Asia 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.
Ares Asia'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.
Ares Asia (HKSE:00645) 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.
Ares Asia Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ares Asia's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00645 has been successfully added to your 