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. Steico SE's quick ratio for the quarter that ended in Jun. 2023 was 2.02.
Steico SE has a quick ratio of 2.02. It generally indicates good short-term financial strength.
The historical rank and industry rank for Steico SE's Quick Ratio or its related term are showing as below:
XTER:ST5'
s Quick Ratio Range Over the Past 10 Years
Min: 0.78 Med: 1.76 Max: 3.64
Current: 2.02
During the past 13 years, Steico SE's highest Quick Ratio was 3.64. The lowest was 0.78. And the median was 1.76.
XTER:ST5's Quick Ratio is ranked better than 77.55% of 294
companies
in the Forest Products industry
Industry Median: 1.02
vs XTER:ST5: 2.02
Steico SE Quick Ratio Historical Data
The historical data trend for Steico SE'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 Lumber & Wood Production subindustry, Steico SE'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.
Steico SE's Quick Ratio Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Steico SE's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Steico SE's Quick Ratio falls into.
Steico SE 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.
Steico SE's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Steico SE (XTER:ST5) 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.
Steico SE Quick Ratio Related Terms
Thank you for viewing the detailed overview of Steico SE's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Steico SE is engaged in the production and sale of a variety of wood fiber insulation products in the European market. Its products include expansion joint fillers, thermal insulation, floor insulation system, multi-purpose rigid insulation boards, multi-purpose wood fiberboards, thermal insulation composite system, sarking, and sheathing boards, construction elements, laminated veneer lumber, sealing systems, and others. The company operates in Germany, European Countries, and the rest of the world.
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