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. Loop Industries's quick ratio for the quarter that ended in Nov. 2023 was 6.44.
Loop Industries has a quick ratio of 6.44. It generally indicates good short-term financial strength.
The historical rank and industry rank for Loop Industries's Quick Ratio or its related term are showing as below:
LOOP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.05 Med: 4.26 Max: 20.53
Current: 6.44
During the past 13 years, Loop Industries's highest Quick Ratio was 20.53. The lowest was 0.05. And the median was 4.26.
LOOP's Quick Ratio is ranked better than 93.81% of 1568
companies
in the Chemicals industry
Industry Median: 1.4
vs LOOP: 6.44
Loop Industries Quick Ratio Historical Data
The historical data trend for Loop Industries'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 Loop Industries's Quick Ratio
For the Specialty Chemicals subindustry, Loop Industries'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.
Loop Industries's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Loop Industries's Quick Ratio falls into.
Loop Industries 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.
Loop Industries's Quick Ratio for the fiscal year that ended in Feb. 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.
Loop Industries (NAS:LOOP) 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.
Loop Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of Loop Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Loop Industries (Loop Industries) Business Description
Loop Industries Inc is a technology and licensing company whose mission is to accelerate the world's shift toward sustainable plastic and away from dependence on fossil fuels. The company owns patented and proprietary technology that depolymerizes no and low value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpet and polyester textile of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). Its monomers are filtered, purified and repolymerized to create virgin-quality Loop branded PET plastic resin and polyester fiber suitable for use in food-grade packaging to be sold to consumer goods companies to help them meet their sustainability objectives.
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