Hudaco Industries (JSE:HDC) Quick Ratio : 1.10 (As of Nov. 2023)

Hudaco Industries Quick Ratio Chart

Hudaco Industries Annual Data
	Trend	Nov14	Nov15	Nov16	Nov17	Nov18	Nov19	Nov20	Nov21	Nov22	Nov23
Quick Ratio		Get a 7-Day Free Trial					1.13	1.26	1.00	0.99	1.10

Hudaco Industries Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Quick Ratio	Get a 7-Day Free Trial															1.00	0.97	0.99	0.92	1.10

Competitive Comparison of Hudaco Industries's Quick Ratio

For the Industrial Distribution subindustry, Hudaco Industries'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.

Hudaco Industries's Quick Ratio Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Hudaco Industries's Quick Ratio falls into.

Hudaco Industries 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.

Hudaco Industries's Quick Ratio for the fiscal year that ended in Nov. 2023 is calculated as

Hudaco Industries's Quick Ratio for the quarter that ended in Nov. 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.

Hudaco Industries  (JSE:HDC) 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.

Hudaco Industries Quick Ratio Related Terms

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Hudaco Industries (JSE:HDC) Business Description