Rainbow Rare Earths has a quick ratio of 2.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for Rainbow Rare Earths's Quick Ratio or its related term are showing as below:
LSE:RBW'
s Quick Ratio Range Over the Past 10 Years
Min: 0.03 Med: 1.38 Max: 7.17
Current: 2.3
During the past 10 years, Rainbow Rare Earths's highest Quick Ratio was 7.17. The lowest was 0.03. And the median was 1.38.
LSE:RBW's Quick Ratio is ranked better than 55.67% of 2680
companies
in the Metals & Mining industry
Industry Median: 1.725
vs LSE:RBW: 2.30
Rainbow Rare Earths Quick Ratio Historical Data
The historical data trend for Rainbow Rare Earths'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 Rainbow Rare Earths's Quick Ratio
For the Other Industrial Metals & Mining subindustry, Rainbow Rare Earths'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.
Rainbow Rare Earths's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rainbow Rare Earths's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Rainbow Rare Earths's Quick Ratio falls into.
Rainbow Rare Earths 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.
Rainbow Rare Earths's Quick Ratio for the fiscal year that ended in Jun. 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.
Rainbow Rare Earths (LSE:RBW) 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.
Rainbow Rare Earths Quick Ratio Related Terms
Thank you for viewing the detailed overview of Rainbow Rare Earths's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rainbow Rare Earths (LSE:RBW) Business Description
Rainbow Rare Earths Ltd aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the magnet rare earth elements neodymium & praseodymium, dysprosium & terbium. It is focused on the development of the Phalaborwa Project and the earlier stage Uberaba Project. Both projects entail the recovery of rare earths from phosphogypsum stacks that occur as the by-product of phosphoric acid production, with the original source rock for both deposits being a hardrock carbonatite.
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