Cardinal Ethanol LLC has a quick ratio of 2.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Cardinal Ethanol LLC's Quick Ratio or its related term are showing as below:
CRDE'
s Quick Ratio Range Over the Past 10 Years
Min: 0.95 Med: 1.94 Max: 4.11
Current: 2.19
During the past 13 years, Cardinal Ethanol LLC's highest Quick Ratio was 4.11. The lowest was 0.95. And the median was 1.94.
CRDE's Quick Ratio is not ranked
in the Chemicals industry.
Industry Median: 1.4
vs CRDE: 2.19
Cardinal Ethanol LLC Quick Ratio Historical Data
The historical data trend for Cardinal Ethanol LLC'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 Cardinal Ethanol LLC's Quick Ratio
For the Chemicals subindustry, Cardinal Ethanol LLC'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.
Cardinal Ethanol LLC's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cardinal Ethanol LLC's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cardinal Ethanol LLC's Quick Ratio falls into.
Cardinal Ethanol LLC 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.
Cardinal Ethanol LLC's Quick Ratio for the fiscal year that ended in Sep. 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.
Cardinal Ethanol LLC (OTCPK:CRDE) 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.
Cardinal Ethanol LLC Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cardinal Ethanol LLC's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cardinal Ethanol LLC (Cardinal Ethanol LLC) Business Description
Cardinal Ethanol LLC is a producer and seller of fuel-grade ethanol, distiller's grains, corn oil, and carbon dioxide throughout the continent of the United States. The company's prime selling products include ethanol, dried distillers grains, corn oil, and carbon dioxide. Its two operating segments are ethanol production through the Ethanol Division; and trading of agricultural grains through the Trading Division. The revenues from Ethanol Division come from primary sources: sales of fuel ethanol which is the key revenue driver. Revenues from the Trading Division are derived from procuring, transporting, and selling grain commodities. The majority of the revenue for the company is generated from its Ethanol Division.
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