Molycorp (XSWX:MCP) Quick Ratio : 2.16 (As of Jun. 2015)

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What is Molycorp Quick Ratio?

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. Molycorp's quick ratio for the quarter that ended in Jun. 2015 was 2.16.

Molycorp has a quick ratio of 2.16. It generally indicates good short-term financial strength.

The historical rank and industry rank for Molycorp's Quick Ratio or its related term are showing as below:

XSWX:MCP' s Quick Ratio Range Over the Past 10 Years
Min: 0.3 Med: 2.16 Max: 22.28
Current: 2.16

During the past 6 years, Molycorp's highest Quick Ratio was 22.28. The lowest was 0.30. And the median was 2.16.

XSWX:MCP's Quick Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 1.76 vs XSWX:MCP: 2.16

Molycorp Quick Ratio Historical Data

The historical data trend for Molycorp'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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Molycorp Quick Ratio Chart

Molycorp Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Quick Ratio

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16.16

2.95

0.96

2.64

2.60

Molycorp Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Quick Ratio	Get a 7-Day Free Trial															1.84	2.72	2.60	1.91	2.16

Competitive Comparison of Molycorp's Quick Ratio

For the Other Industrial Metals & Mining subindustry, Molycorp'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.

Molycorp's Quick Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Molycorp's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Molycorp's Quick Ratio falls into.

Molycorp 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.

Molycorp's Quick Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Quick Ratio (A: Dec. 2014 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(443.679	-	165.141)	/	107.336
	=	2.60

Molycorp's Quick Ratio for the quarter that ended in Jun. 2015 is calculated as

Quick Ratio (Q: Jun. 2015 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(312.405	-	159.676)	/	70.76
	=	2.16

Molycorp (XSWX:MCP) 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.

Molycorp Quick Ratio Related Terms

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Molycorp (XSWX:MCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Molycorp Inc (XSWX:MCP) » Definitions » Quick Ratio

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Address

Website

http://www.molycorp.com

Molycorp Inc, formerly known as Rare Earth Acquisitions LLC, was formed on March 4, 2010 as a new Delaware corporation. The Company manufactures custom engineered rare earth and rare metal products. Its business is organized into four reportable segments: Resources; Chemicals and Oxides; Magnetic Materials and Alloys; and Rare Metals. The Resources segment includes its operations at the Molycorp Mountain Pass Rare Earth Facility, where it conducts rare earth minerals extraction to produce: rare earth concentrates; REO, including lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbXTM, a line of proprietary rare earth-based water treatment products. The Chemicals and Oxides segment includes: production of REO at its operations at Molycorp Silmet; separated heavy rare earth oxides and other custom engineered materials from its facilities in Jiangyin, Jiangsu Province, China; and production of REO, salts of rare earth elements, or REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from its facilities in Zibo, Shandong Province, China. The Magnetic Materials and Alloys segment includes: the production of Neo Powders through its wholly-owned manufacturing facilities in Tianjin, China, and Korat, Thailand, under the Molycorp Magnequench brand. This operating segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at its MMA facility, located in Tolleson, Arizona. The Rare Metals segment produces, reclaims, refines and markets high value niche metals and their compounds that include gallium, indium, rhenium, tantalum, and niobium. Applications from products made in this segment include wireless technologies, LED, flat panel display, turbine, solar, catalyst, steel additive, electronics applications, and others. The Company's operations are subject to numerous and detailed international, national, federal, state and local laws, regulations and permits affecting the mining and mineral processing industry, including those pertaining to employee health and safety, environmental permitting and licensing, air quality standards, greenhouse gas, or GHG, emissions, water usage and disposal, pollution, waste management, plant and wildlife protection, handling and disposal of radioactive substances, remediation of soil and groundwater contamination, land use, reclamation and restoration of properties, the discharge of materials into the environment and groundwater quality and availability.

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