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. Grupo TMM's quick ratio for the quarter that ended in Mar. 2024 was 0.79.
Grupo TMM has a quick ratio of 0.79. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Grupo TMM's Quick Ratio or its related term are showing as below:
GTMAY'
s Quick Ratio Range Over the Past 10 Years
Min: 0.71 Med: 1.27 Max: 1.61
Current: 0.87
During the past 13 years, Grupo TMM's highest Quick Ratio was 1.61. The lowest was 0.71. And the median was 1.27.
GTMAY's Quick Ratio is ranked worse than 71.75% of 984
companies
in the Transportation industry
Industry Median: 1.245
vs GTMAY: 0.87
Grupo TMM Quick Ratio Historical Data
The historical data trend for Grupo TMM'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 Marine Shipping subindustry, Grupo TMM'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.
Grupo TMM's Quick Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Grupo TMM's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Grupo TMM's Quick Ratio falls into.
Grupo TMM 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.
Grupo TMM's Quick Ratio for the fiscal year that ended in Dec. 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.
Grupo TMM (OTCPK:GTMAY) 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.
Grupo TMM Quick Ratio Related Terms
Thank you for viewing the detailed overview of Grupo TMM's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Grupo TMM SA is an integrated logistics and transportation company in Mexico. It provides dynamic ocean transportation services to various international and domestic clients. The company operates through four segments namely Maritime division, Logistics division, Ports, and terminals division and Warehousing division. The Maritime division includes transportation of bulk liquid products, materials, provisions for drilling platforms, and towing services for ships. The Logistics segment provides trucking services to various manufacturers and retailers. Operations at ports and terminals assist in loading and unloading, storage at maritime port terminals, and shipping agency operations. The warehousing segment includes storage and management of the facilities and bonded warehouses.
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