CMO Group (LSE:CMO) Quick Ratio : 0.43 (As of Jun. 2023)

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What is CMO Group Quick Ratio?

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. CMO Group's quick ratio for the quarter that ended in Jun. 2023 was 0.43.

CMO Group has a quick ratio of 0.43. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for CMO Group's Quick Ratio or its related term are showing as below:

LSE:CMO' s Quick Ratio Range Over the Past 10 Years
Min: 0.4 Med: 0.53 Max: 0.59
Current: 0.43

During the past 5 years, CMO Group's highest Quick Ratio was 0.59. The lowest was 0.40. And the median was 0.53.

LSE:CMO's Quick Ratio is ranked worse than
76.85% of 1119 companies
in the Retail - Cyclical industry
Industry Median: 0.88 vs LSE:CMO: 0.43

CMO Group Quick Ratio Historical Data

The historical data trend for CMO Group'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.

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CMO Group Quick Ratio Chart

CMO Group Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Quick Ratio

0.53

0.49

0.59

0.53

CMO Group Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Quick Ratio	Get a 7-Day Free Trial				0.40	0.59	0.52	0.53	0.43

Competitive Comparison of CMO Group's Quick Ratio

For the Home Improvement Retail subindustry, CMO Group'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.

CMO Group's Quick Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, CMO Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where CMO Group's Quick Ratio falls into.

CMO Group 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.

CMO Group's Quick Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Quick Ratio (A: Dec. 2022 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(14.396	-	5.454)	/	16.79
	=	0.53

CMO Group's Quick Ratio for the quarter that ended in Jun. 2023 is calculated as

Quick Ratio (Q: Jun. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(12.713	-	5.385)	/	17.182
	=	0.43

CMO Group (LSE:CMO) 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.

CMO Group Quick Ratio Related Terms

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