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. Axalta Coating Systems's quick ratio for the quarter that ended in Dec. 2023 was 1.46.
Axalta Coating Systems has a quick ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Axalta Coating Systems's Quick Ratio or its related term are showing as below:
AXTA'
s Quick Ratio Range Over the Past 10 Years
Min: 1.35 Med: 1.5 Max: 2
Current: 1.46
During the past 13 years, Axalta Coating Systems's highest Quick Ratio was 2.00. The lowest was 1.35. And the median was 1.50.
AXTA's Quick Ratio is ranked better than 52.14% of 1569
companies
in the Chemicals industry
Industry Median: 1.39
vs AXTA: 1.46
Axalta Coating Systems Quick Ratio Historical Data
The historical data trend for Axalta Coating Systems'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 Axalta Coating Systems's Quick Ratio
For the Specialty Chemicals subindustry, Axalta Coating Systems'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.
Axalta Coating Systems's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Axalta Coating Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Axalta Coating Systems's Quick Ratio falls into.
Axalta Coating Systems 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.
Axalta Coating Systems'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.
Axalta Coating Systems (NYSE:AXTA) 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.
Axalta Coating Systems Quick Ratio Related Terms
Thank you for viewing the detailed overview of Axalta Coating Systems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Axalta Coating Systems (Axalta Coating Systems) Business Description
Axalta Coating Systems Ltd is a manufacturer, marketer and distributor of high-performance coatings systems. It operates in two segments, The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial. The Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The company operates in the geographic areas of North America, EMEA countries, Asia-Pacific and Latin America.
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