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. Takuma Co's quick ratio for the quarter that ended in Dec. 2023 was 1.87.
Takuma Co has a quick ratio of 1.87. It generally indicates good short-term financial strength.
The historical rank and industry rank for Takuma Co's Quick Ratio or its related term are showing as below:
TSE:6013'
s Quick Ratio Range Over the Past 10 Years
Min: 1.41 Med: 1.78 Max: 2
Current: 1.87
During the past 13 years, Takuma Co's highest Quick Ratio was 2.00. The lowest was 1.41. And the median was 1.78.
TSE:6013's Quick Ratio is ranked better than 65.55% of 3028
companies
in the Industrial Products industry
Industry Median: 1.39
vs TSE:6013: 1.87
Takuma Co Quick Ratio Historical Data
The historical data trend for Takuma 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.
For the Pollution & Treatment Controls subindustry, Takuma 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.
Takuma Co's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Takuma Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Takuma Co's Quick Ratio falls into.
Takuma 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.
Takuma 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.
Takuma Co (TSE:6013) 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.
Takuma Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Takuma Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Takuma Co Ltd develops a variety of technologies for waste and water treatment. It designs and constructs boilers, plant machinery, pollution-prevention plans, heating and cooling equipment, and sanitation equipment and facilities. Incinerators and recycling centers help sort, treat, and disperse resources in an efficient manner. The majority of customers are in Japan. The company works to provide solid waste treatment plants partnered with a selection of after-sales services and products. Takuma has four operating segments: domestic environment and energy, overseas environment and energy, package boiler, and equipment and system business. Cleaning systems, filters, and other equipment produce comfortable working conditions for customers.
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