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. Metalico's quick ratio for the quarter that ended in Jun. 2015 was 0.57.
Metalico has a quick ratio of 0.57. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Metalico's Quick Ratio or its related term are showing as below:
FRA:MT5'
s Quick Ratio Range Over the Past 10 Years
Min: 0.53 Med: 1.71 Max: 3.46
Current: 0.57
During the past 13 years, Metalico's highest Quick Ratio was 3.46. The lowest was 0.53. And the median was 1.71.
FRA:MT5's Quick Ratio is not ranked
in the Industrial Products industry.
Industry Median: 1.39
vs FRA:MT5: 0.57
Metalico Quick Ratio Historical Data
The historical data trend for Metalico'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.
For the Metal Fabrication subindustry, Metalico'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.
Metalico's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Metalico's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Metalico's Quick Ratio falls into.
Metalico 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.
Metalico's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Metalico (FRA:MT5) 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.
Metalico Quick Ratio Related Terms
Thank you for viewing the detailed overview of Metalico's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Metalico Inc was originally organized as a Delaware corporation in August 1997. The Company along with its subsidiaries operates in two distinct business segments; scrap metal recycling and lead metal product fabricating. The Companys operating facilities include thirty-one scrap metal recycling facilities, including a combined aluminum de-oxidizing plant and four lead product manufacturing and fabricating plants. In the Scrap Metal Recycling segment, its operations mainly involves the collection and processing of ferrous and non-ferrous metals. It collects industrial and obsolete scrap metal, process it into reusable forms and supply the recycled metals to its consumers that include electric arc furnace mills, integrated steel mills, foundries, secondary smelters, aluminum recyclers and metal brokers. The Company acquires unprocessed scrap metals mainly in its local and regional markets and sells to consumers nationally and in Canada as well as to exporters and international brokers. Some of the metal commodities it recycles include steel, copper, aluminum, stainless steel, molybdenum, tantalum, platinum, lead and many others. In Lead Fabricating segment, through four physical operations located in three states, the Company consumes approximately 40 to 45 million pounds of lead metal per year that are utilized in more than one hundred different base products. Its products are sold nationally into diverse industries such as roofing, plumbing, radiation shielding for pharmaceutical and power generation, electronic solders, ammunition, automotive, Department of Defense contractors, and others. The Company sells its lead fabrications nationally. Products are sold to distributors, wholesalers, the plumbing and building trades, equipment manufacturers and other consumers. Its lead fabrication facilities compete against two fabricators of similar, but limited products based in the Southwest who distribute nationally and several smaller regional producers of similar products. To a lesser extent, it also competes against products imported from South America, Canada, Europe and Asia. The Company is subject to comprehensive and frequently changing Federal, state and local laws and regulations.
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