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. Leo Palace21's quick ratio for the quarter that ended in Dec. 2023 was 1.22.
Leo Palace21 has a quick ratio of 1.22. It generally indicates good short-term financial strength.
The historical rank and industry rank for Leo Palace21's Quick Ratio or its related term are showing as below:
TSE:8848'
s Quick Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.08 Max: 1.45
Current: 1.22
During the past 13 years, Leo Palace21's highest Quick Ratio was 1.45. The lowest was 0.67. And the median was 1.08.
TSE:8848's Quick Ratio is ranked better than 63.86% of 1826
companies
in the Real Estate industry
Industry Median: 0.81
vs TSE:8848: 1.22
Leo Palace21 Quick Ratio Historical Data
The historical data trend for Leo Palace21'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 Leo Palace21's Quick Ratio
For the Real Estate Services subindustry, Leo Palace21'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.
Leo Palace21's Quick Ratio Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Leo Palace21's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Leo Palace21's Quick Ratio falls into.
Leo Palace21 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.
Leo Palace21'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.
Leo Palace21 (TSE:8848) 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.
Leo Palace21 Quick Ratio Related Terms
Thank you for viewing the detailed overview of Leo Palace21's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Leo Palace21 Corp has two core businesses: Construction, which builds apartment buildings, and Leasing, which rents and manages units in the apartments that the company builds. Upon completion, Leo Palace21 typically sells buildings to investors and then pays them a fixed rental amount for all the units in the building, whether occupied or not. LeoPalace21 then rents, manages, and maintains the units and keeps all rent from tenants as its own revenue. The company also has an Elderly Care business, which runs nursing facilities, and a Hotel & Resort business. The vast majority of LeoPalace21's revenue comes from the Leasing segment, and more than 90% of the company's revenue is generated in Japan.
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