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. Omfurn India's quick ratio for the quarter that ended in Sep. 2023 was 0.87.
Omfurn India has a quick ratio of 0.87. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Omfurn India's Quick Ratio or its related term are showing as below:
NSE:OMFURN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1.04 Max: 1.52
Current: 0.87
During the past 11 years, Omfurn India's highest Quick Ratio was 1.52. The lowest was 0.87. And the median was 1.04.
NSE:OMFURN's Quick Ratio is ranked worse than 69.88% of 425
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.18
vs NSE:OMFURN: 0.87
Omfurn India Quick Ratio Historical Data
The historical data trend for Omfurn 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 Omfurn India's Quick Ratio
For the Furnishings, Fixtures & Appliances subindustry, Omfurn 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.
Omfurn India's Quick Ratio Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Omfurn India's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Omfurn India's Quick Ratio falls into.
Omfurn 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.
Omfurn India's Quick Ratio for the fiscal year that ended in Mar. 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.
Omfurn India (NSE:OMFURN) 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.
Omfurn India Quick Ratio Related Terms
Thank you for viewing the detailed overview of Omfurn India's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Omfurn India Ltd is engaged in the business of manufacturing and supplying of furniture's like Executive office furniture, International school furniture, Modular office furniture, Bedroom Furniture, wooden door and frame and many more in terms of customized, system-based or Turnkey projects throughout India. The company's only operating segment being Manufacturing and supply of furniture items.
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