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. De Neers Tools's quick ratio for the quarter that ended in Mar. 2022 was 0.85.
De Neers Tools has a quick ratio of 0.85. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for De Neers Tools's Quick Ratio or its related term are showing as below:
NSE:DENEERS's Quick Ratio is not ranked *
in the Industrial Products industry.
Industry Median: 1.4 * Ranked among companies with meaningful Quick Ratio only.
De Neers Tools Quick Ratio Historical Data
The historical data trend for De Neers Tools'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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De Neers Tools Quick Ratio Chart
De Neers Tools Annual Data
Trend
Mar20
Mar21
Mar22
Quick Ratio
0.96
0.72
0.85
De Neers Tools Semi-Annual Data
Mar20
Mar21
Mar22
Quick Ratio
0.96
0.72
0.85
Competitive Comparison of De Neers Tools's Quick Ratio
For the Tools & Accessories subindustry, De Neers Tools'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.
De Neers Tools's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, De Neers Tools's Quick Ratio distribution charts can be found below:
* The bar in red indicates where De Neers Tools's Quick Ratio falls into.
De Neers Tools 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.
De Neers Tools's Quick Ratio for the fiscal year that ended in Mar. 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.
De Neers Tools (NSE:DENEERS) 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.
De Neers Tools Quick Ratio Related Terms
Thank you for viewing the detailed overview of De Neers Tools's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
De Neers Tools Ltd is a hand tools suppliers in India. The company aims to provide hand tools of the utmost quality that are worth Its customers' money. It continuously works on innovation and research to develop products that can bring a kind of revolution in the hand tool industry. Its products includes Spanners, Wrenches, Pliers, Cutters, Allen keys, Hammers, sockets, Screw Drivers, Tool Kits, Tool Cabinets, Trolleys, etc. It is also specialized in providing Safety Tools like Non-Sparking Tools, Insulated Steel Tools, Non-Sparking Insulated Tools, Stainless Steel Anti-magnetic Tools, and Titanium Tools, with other range of hand tools. The company is predominantly engaged in wholesale trading of hardware & tools which constitutes a single business segment.
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