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Renesas Electronics (TSE:6723) Quick Ratio : 0.77 (As of Dec. 2023)


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What is Renesas Electronics Quick Ratio?

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. Renesas Electronics's quick ratio for the quarter that ended in Dec. 2023 was 0.77.

Renesas Electronics has a quick ratio of 0.77. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Renesas Electronics's Quick Ratio or its related term are showing as below:

TSE:6723' s Quick Ratio Range Over the Past 10 Years
Min: 0.77   Med: 1.05   Max: 2.54
Current: 0.77

During the past 13 years, Renesas Electronics's highest Quick Ratio was 2.54. The lowest was 0.77. And the median was 1.05.

TSE:6723's Quick Ratio is ranked worse than
87.2% of 1000 companies
in the Semiconductors industry
Industry Median: 1.84 vs TSE:6723: 0.77

Renesas Electronics Quick Ratio Historical Data

The historical data trend for Renesas Electronics'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.

* Premium members only.

Renesas Electronics Quick Ratio Chart

Renesas Electronics Annual Data
Trend Mar14 Mar15 Mar16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.91 1.09 0.85 1.00 0.77

Renesas Electronics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.89 0.85 0.79 0.77 -

Competitive Comparison of Renesas Electronics's Quick Ratio

For the Semiconductors subindustry, Renesas Electronics'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.


Renesas Electronics's Quick Ratio Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Renesas Electronics's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Renesas Electronics's Quick Ratio falls into.



Renesas Electronics 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.

Renesas Electronics's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(800673-163054)/828725
=0.77

Renesas Electronics's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(800673-163054)/828725
=0.77

* 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.


Renesas Electronics  (TSE:6723) 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.


Renesas Electronics Quick Ratio Related Terms

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Renesas Electronics (TSE:6723) Business Description

Traded in Other Exchanges
Address
Toyosu Foresia, 3-2-24, Toyosu, Koto-ku, Tokyo, JPN, 135-0061
Renesas Electronics Corp is a Japan-based company that manufactures and distributes semiconductor components and other products for use in automotive, healthcare, computer peripheral, connectivity, home appliance, and industrial end markets. Its product portfolio includes microcontrollers and microprocessors, embedded systems platform, insulated-gate bipolar transistors, intelligent power devices, thrysistors, transistors, diodes, analog integrated circuits, and optoelectronics products. The firm has operations in Japan, the Americas, Europe, Middle East and Africa, and Asia.

Renesas Electronics (TSE:6723) Headlines

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