Nippon Kayaku Co has a quick ratio of 2.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nippon Kayaku Co's Quick Ratio or its related term are showing as below:
TSE:4272'
s Quick Ratio Range Over the Past 10 Years
Min: 2.01 Med: 2.62 Max: 2.98
Current: 2.01
During the past 13 years, Nippon Kayaku Co's highest Quick Ratio was 2.98. The lowest was 2.01. And the median was 2.62.
TSE:4272's Quick Ratio is ranked better than 67.84% of 1567
companies
in the Chemicals industry
Industry Median: 1.4
vs TSE:4272: 2.01
Nippon Kayaku Co Quick Ratio Historical Data
The historical data trend for Nippon Kayaku Co'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 Nippon Kayaku Co's Quick Ratio
For the Chemicals subindustry, Nippon Kayaku Co'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.
Nippon Kayaku Co's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku Co's Quick Ratio falls into.
Nippon Kayaku Co 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.
Nippon Kayaku Co'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.
Nippon Kayaku Co (TSE:4272) 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.
Nippon Kayaku Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nippon Kayaku Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
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