AAG Energy Holdings has a quick ratio of 2.61. It generally indicates good short-term financial strength.
The historical rank and industry rank for AAG Energy Holdings's Quick Ratio or its related term are showing as below:
HKSE:02686's Quick Ratio is not ranked *
in the Oil & Gas industry.
Industry Median: 1.1 * Ranked among companies with meaningful Quick Ratio only.
AAG Energy Holdings Quick Ratio Historical Data
The historical data trend for AAG Energy Holdings'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 AAG Energy Holdings's Quick Ratio
For the Oil & Gas E&P subindustry, AAG Energy Holdings'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.
AAG Energy Holdings's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, AAG Energy Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where AAG Energy Holdings's Quick Ratio falls into.
AAG Energy Holdings 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.
AAG Energy Holdings's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
AAG Energy Holdings (HKSE:02686) 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.
AAG Energy Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of AAG Energy Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AAG Energy Holdings (HKSE:02686) Business Description
AAG Energy Holdings Ltd is an international energy company. It is engaged in the exploration, development, and production of coalbed methane (CBM) in the People's Republic of China. Its operating assets, the Panzhuang and Mabi concessions are located in the Southwestern part of the Qinshui Basin, which boasts CBM geological reserves of any basin in China. The Group conducts its business through two Production Sharing Contracts entered into with China United Coalbed Methane Corporation Ltd and China National Petroleum Corporation for Panzhuang and Mabi concessions respectively in Qinshui Basin, Shanxi Province of the PRC.
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