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. Adani Power's quick ratio for the quarter that ended in Mar. 2024 was 1.36.
Adani Power has a quick ratio of 1.36. It generally indicates good short-term financial strength.
The historical rank and industry rank for Adani Power's Quick Ratio or its related term are showing as below:
BOM:533096'
s Quick Ratio Range Over the Past 10 Years
Min: 0.46 Med: 0.66 Max: 1.36
Current: 1.36
During the past 13 years, Adani Power's highest Quick Ratio was 1.36. The lowest was 0.46. And the median was 0.66.
BOM:533096's Quick Ratio is ranked better than 58.53% of 434
companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.215
vs BOM:533096: 1.36
Adani Power Quick Ratio Historical Data
The historical data trend for Adani Power'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 Adani Power's Quick Ratio
For the Utilities - Independent Power Producers subindustry, Adani Power'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.
Adani Power's Quick Ratio Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Adani Power's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Adani Power's Quick Ratio falls into.
Adani Power 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.
Adani Power's Quick Ratio for the fiscal year that ended in Mar. 2024 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.
Adani Power (BOM:533096) 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.
Adani Power Quick Ratio Related Terms
Thank you for viewing the detailed overview of Adani Power's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Adani Power Ltd is an electric utility company that produces and transmits energy from its portfolio of power plants located throughout India. The company produces its energy using thermal fuel sources, such as coal but also owns facilities that utilize solar and steam generation. Adani Power generates the vast majority of its revenue through the sale of electricity to state distribution companies and the transmission of energy to the state and central utilities. The company's electricity sales are structured through long-term agreements. Adani Power is India's private power producer, owns the world's private coal-based power plant, and is a part of the conglomerate that is India's coal importer.
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