Blue Label Telecoms (JSE:BLU) Quick Ratio : 0.69 (As of Nov. 2023)

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What is Blue Label Telecoms Quick Ratio?

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. Blue Label Telecoms's quick ratio for the quarter that ended in Nov. 2023 was 0.69.

Blue Label Telecoms has a quick ratio of 0.69. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Blue Label Telecoms's Quick Ratio or its related term are showing as below:

JSE:BLU' s Quick Ratio Range Over the Past 10 Years
Min: 0.69 Med: 1.07 Max: 1.7
Current: 0.69

During the past 13 years, Blue Label Telecoms's highest Quick Ratio was 1.70. The lowest was 0.69. And the median was 1.07.

JSE:BLU's Quick Ratio is ranked worse than
70.51% of 390 companies
in the Telecommunication Services industry
Industry Median: 0.96 vs JSE:BLU: 0.69

Blue Label Telecoms Quick Ratio Historical Data

The historical data trend for Blue Label Telecoms'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.

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Blue Label Telecoms Quick Ratio Chart

Blue Label Telecoms Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Quick Ratio

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1.07

1.04

1.07

1.16

1.05

Blue Label Telecoms Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Quick Ratio	Get a 7-Day Free Trial															0.99	1.16	0.89	1.05	0.69

Competitive Comparison of Blue Label Telecoms's Quick Ratio

For the Telecom Services subindustry, Blue Label Telecoms'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.

Blue Label Telecoms's Quick Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Blue Label Telecoms's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Blue Label Telecoms's Quick Ratio falls into.

Blue Label Telecoms 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.

Blue Label Telecoms's Quick Ratio for the fiscal year that ended in May. 2023 is calculated as

Quick Ratio (A: May. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(9018.238	-	555.81)	/	8031.576
	=	1.05

Blue Label Telecoms's Quick Ratio for the quarter that ended in Nov. 2023 is calculated as

Quick Ratio (Q: Nov. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(8904.878	-	2828.768)	/	8836.235
	=	0.69

Blue Label Telecoms (JSE:BLU) 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.

Blue Label Telecoms Quick Ratio Related Terms

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Blue Label Telecoms (JSE:BLU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Blue Label Telecoms Ltd (JSE:BLU) » Definitions » Quick Ratio

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Traded in Other Exchanges

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Address

75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196

Website

https://www.bluelabeltelecoms.co.za

Blue Label Telecoms Ltd is a technology company. It derives revenue from the distribution of airtime and mobile transaction services. It operates through four segments: African Distribution, International, Solutions and Corporate. African distribution includes the distribution of physical and virtual prepaid airtime and electricity of the South African telecommunication and utilities companies. International includes the distribution of physical and virtual prepaid airtime in India and Mexico and payment solutions in India. Solutions include the provision of a mobile transactional platform and the marketing of mobile and financial products. The company generates the vast majority of its revenue in South Africa.