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. Patriot Lithium's quick ratio for the quarter that ended in Dec. 2023 was 14.54.
Patriot Lithium has a quick ratio of 14.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Patriot Lithium's Quick Ratio or its related term are showing as below:
ASX:PAT'
s Quick Ratio Range Over the Past 10 Years
Min: 14.54 Med: 19.78 Max: 44.26
Current: 14.54
During the past 2 years, Patriot Lithium's highest Quick Ratio was 44.26. The lowest was 14.54. And the median was 19.78.
ASX:PAT's Quick Ratio is ranked better than 89.04% of 2683
companies
in the Metals & Mining industry
Industry Median: 1.69
vs ASX:PAT: 14.54
Patriot Lithium Quick Ratio Historical Data
The historical data trend for Patriot Lithium'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.
Patriot Lithium Quick Ratio Chart
Patriot Lithium Annual Data
Trend
Jun22
Jun23
Quick Ratio
32.82
19.78
Patriot Lithium Semi-Annual Data
Dec22
Jun23
Dec23
Quick Ratio
44.26
19.78
14.54
Competitive Comparison of Patriot Lithium's Quick Ratio
For the Other Industrial Metals & Mining subindustry, Patriot Lithium'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.
Patriot Lithium's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Patriot Lithium's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Patriot Lithium's Quick Ratio falls into.
Patriot Lithium 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.
Patriot Lithium's Quick Ratio for the fiscal year that ended in Jun. 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.
Patriot Lithium (ASX:PAT) 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.
Patriot Lithium Quick Ratio Related Terms
Thank you for viewing the detailed overview of Patriot Lithium's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Patriot Lithium Ltd is focused on acquiring, exploring and developing lithium projects in South Dakota, Wyoming and Arizona in the United States of America. The company has three project areas, namely the Keystone Project comprising of 255 unpatented lode mining claims, the Tinton West Project comprising the TSD Claim Group of 20 unpatented lode mining claims and the TW Claim Group of 49 unpatented lode mining claims, and the Wickenburg Project comprising of 347 unpatented lode mining claims. The company is also engaged in the Ontario Lithium project.
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