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. BOC Aviation's quick ratio for the quarter that ended in Dec. 2023 was 0.24.
BOC Aviation has a quick ratio of 0.24. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for BOC Aviation's Quick Ratio or its related term are showing as below:
HKSE:02588'
s Quick Ratio Range Over the Past 10 Years
Min: 0.15 Med: 0.32 Max: 0.69
Current: 0.24
During the past 12 years, BOC Aviation's highest Quick Ratio was 0.69. The lowest was 0.15. And the median was 0.32.
HKSE:02588's Quick Ratio is ranked worse than 97.12% of 1078
companies
in the Business Services industry
Industry Median: 1.54
vs HKSE:02588: 0.24
BOC Aviation Quick Ratio Historical Data
The historical data trend for BOC Aviation'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 BOC Aviation's Quick Ratio
For the Rental & Leasing Services subindustry, BOC Aviation'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.
BOC Aviation's Quick Ratio Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, BOC Aviation's Quick Ratio distribution charts can be found below:
* The bar in red indicates where BOC Aviation's Quick Ratio falls into.
BOC Aviation 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.
BOC Aviation'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.
BOC Aviation (HKSE:02588) 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.
BOC Aviation Quick Ratio Related Terms
Thank you for viewing the detailed overview of BOC Aviation's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
BOC Aviation is the world's fifth-largest aircraft leasing company by net book value of owned aircraft, with a portfolio of more than 600 commercial passenger and cargo aircraft. The company was founded in 1993 in Singapore as a joint venture between Singapore Airlines and U.S.-based Boullioun Aviation Services. In 2006, the company was acquired by the Bank of China and took on its current name. Listed on the Stock Exchange of Hong Kong in 2016, BOC Aviation remains headquartered in Singapore, but has operations in Dublin, London, New York, and Tianjin. Bank of China remains its largest shareholder with a 70% stake. BOC Aviation has an international management team with its key leaders having more than 30 years of experience in the aircraft and leasing business.
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