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. AGL Resources's quick ratio for the quarter that ended in Mar. 2016 was 0.48.
AGL Resources has a quick ratio of 0.48. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for AGL Resources's Quick Ratio or its related term are showing as below:
GAS's Quick Ratio is not ranked *
in the Utilities - Regulated industry.
Industry Median: 0.97 * Ranked among companies with meaningful Quick Ratio only.
AGL Resources Quick Ratio Historical Data
The historical data trend for AGL Resources'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 AGL Resources's Quick Ratio
For the Utilities - Regulated Gas subindustry, AGL Resources'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.
AGL Resources's Quick Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, AGL Resources's Quick Ratio distribution charts can be found below:
* The bar in red indicates where AGL Resources's Quick Ratio falls into.
AGL Resources 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.
AGL Resources's Quick Ratio for the fiscal year that ended in Dec. 2015 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.
AGL Resources (NYSE:GAS) 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.
AGL Resources Quick Ratio Related Terms
Thank you for viewing the detailed overview of AGL Resources's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AGL Resources (AGL Resources) Business Description
AGL Resources Inc was incorporated on November 27, 1995 under the laws of the State of Georgia. It is an energy services holding company. The Company is engaged in the distribution of natural gas in seven states; Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland through its seven natural gas distribution utilities. The Company's business segments are Distribution Operations, Retail Operations, Wholesale Services and Midstream Operations. The distribution operations segment includes seven natural gas local distribution utilities with a focus of providing safe and reliable delivery of natural gas. The retail operations segment serves natural gas commodity customers and service contracts. The wholesale services segment is engaged in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing of natural gas across the U.S. and Canada. Wholesale services utilizes a portfolio of natural gas storage assets, contracted supply from all of the main producing regions, as well as contracted storage and transportation capacity to provide these services to its customers. The midstream operations segment includes a number of businesses that are related and complementary to its primary business. The Company competes with electric utilities and fuel oil and propane providers serving the residential, commercial and industrial markets and natural gas facilities. The Company's business is subject to substantial regulation by federal, state and local regulatory authorities.
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