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. DMC Global's quick ratio for the quarter that ended in Dec. 2023 was 1.27.
DMC Global has a quick ratio of 1.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for DMC Global's Quick Ratio or its related term are showing as below:
BOOM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.02 Med: 1.34 Max: 1.93
Current: 1.27
During the past 13 years, DMC Global's highest Quick Ratio was 1.93. The lowest was 1.02. And the median was 1.34.
BOOM's Quick Ratio is ranked better than 56.2% of 1073
companies
in the Oil & Gas industry
Industry Median: 1.11
vs BOOM: 1.27
DMC Global Quick Ratio Historical Data
The historical data trend for DMC Global'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 DMC Global's Quick Ratio
For the Oil & Gas Equipment & Services subindustry, DMC Global'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.
DMC Global's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, DMC Global's Quick Ratio distribution charts can be found below:
* The bar in red indicates where DMC Global's Quick Ratio falls into.
DMC Global 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.
DMC Global's Quick Ratio for the fiscal year that ended in Dec. 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.
DMC Global (NAS:BOOM) 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.
DMC Global Quick Ratio Related Terms
Thank you for viewing the detailed overview of DMC Global's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
DMC Global Inc operates a diversified family of technical product and process businesses serving the energy, industrial and infrastructure markets. Its business is organized into three segments: Arcadia, DynaEnergetics, and NobelClad. Arcadia is a provider of architectural building products and operates in two divisions - Commercial and Residential. NobelClad is involved in the production of explosion-welded clad metal plates for use in the construction of corrosion-resistant industrial processing equipment and specialized transition joints. DynaEnergetics driver, designs manufactures and distributes products utilized by the oil and gas industry principally for the perforation of oil and gas wells.
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