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. Coal India's quick ratio for the quarter that ended in Mar. 2024 was 1.53.
Coal India has a quick ratio of 1.53. It generally indicates good short-term financial strength.
The historical rank and industry rank for Coal India's Quick Ratio or its related term are showing as below:
NSE:COALINDIA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.23 Med: 1.5 Max: 2.47
Current: 1.53
During the past 13 years, Coal India's highest Quick Ratio was 2.47. The lowest was 1.23. And the median was 1.50.
NSE:COALINDIA's Quick Ratio is ranked better than 50.84% of 179
companies
in the Other Energy Sources industry
Industry Median: 1.51
vs NSE:COALINDIA: 1.53
Coal India Quick Ratio Historical Data
The historical data trend for Coal India'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 Coal India's Quick Ratio
For the Thermal Coal subindustry, Coal India'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.
Coal India's Quick Ratio Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Coal India's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Coal India's Quick Ratio falls into.
Coal India 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.
Coal India's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Coal India (NSE:COALINDIA) 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.
Coal India Quick Ratio Related Terms
Thank you for viewing the detailed overview of Coal India's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Coal India Ltd is a state-owned coal mining company, which was formed when the government took over many private coal mines. As one of the largest coal producers in the world, Coal India is responsible for the vast majority of India's coal production. The company operates across numerous mining areas spread over various provincial states of India, and one mine planning and consultancy company. The Company is primarily engaged in a single segment business of production and sale of Coal. Coal India has hundreds of mines, the bulk of which are underground, closely trailed by open-pit, while also operating multiple coking coal washeries.
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