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. Tianqi Lithium's quick ratio for the quarter that ended in Dec. 2023 was 2.47.
Tianqi Lithium has a quick ratio of 2.47. It generally indicates good short-term financial strength.
The historical rank and industry rank for Tianqi Lithium's Quick Ratio or its related term are showing as below:
HKSE:09696'
s Quick Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.44 Max: 3.15
Current: 2.47
During the past 5 years, Tianqi Lithium's highest Quick Ratio was 3.15. The lowest was 0.08. And the median was 0.44.
HKSE:09696's Quick Ratio is ranked better than 57.21% of 2676
companies
in the Metals & Mining industry
Industry Median: 1.76
vs HKSE:09696: 2.47
Tianqi Lithium Quick Ratio Historical Data
The historical data trend for Tianqi Lithium'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 Tianqi Lithium's Quick Ratio
For the Other Industrial Metals & Mining subindustry, Tianqi Lithium'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.
Tianqi Lithium's Quick Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Tianqi Lithium's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tianqi Lithium's Quick Ratio falls into.
Tianqi Lithium 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.
Tianqi Lithium'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.
Tianqi Lithium (HKSE:09696) 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.
Tianqi Lithium Quick Ratio Related Terms
Thank you for viewing the detailed overview of Tianqi Lithium's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.
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