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. Avon Protection's quick ratio for the quarter that ended in Sep. 2023 was 1.80.
Avon Protection has a quick ratio of 1.80. It generally indicates good short-term financial strength.
The historical rank and industry rank for Avon Protection's Quick Ratio or its related term are showing as below:
LSE:AVON'
s Quick Ratio Range Over the Past 10 Years
Min: 0.64 Med: 1.35 Max: 2.3
Current: 1.8
During the past 13 years, Avon Protection's highest Quick Ratio was 2.30. The lowest was 0.64. And the median was 1.35.
LSE:AVON's Quick Ratio is ranked better than 70.29% of 313
companies
in the Aerospace & Defense industry
Industry Median: 1.1
vs LSE:AVON: 1.80
Avon Protection Quick Ratio Historical Data
The historical data trend for Avon Protection'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 Avon Protection's Quick Ratio
For the Aerospace & Defense subindustry, Avon Protection'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.
Avon Protection's Quick Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Avon Protection's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Avon Protection's Quick Ratio falls into.
Avon Protection 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.
Avon Protection's Quick Ratio for the fiscal year that ended in Sep. 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.
Avon Protection (LSE:AVON) 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.
Avon Protection Quick Ratio Related Terms
Thank you for viewing the detailed overview of Avon Protection's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Avon Protection PLC is engaged in providing technology that designs and produces life-critical personal protection systems to maximize the performance and capabilities of its customers. The company's portfolio of life-critical protection solutions includes full-face respirators, ballistic helmets, escape hoods, SCBA systems, modular PAPR units, thermal imaging cameras, and underwater equipment for the world's militaries and first responders. The company has two operating and reportable segments, these being Respiratory Protection; which is the key revenue generating segment and the Head Protection. Geographically, the revenue is generated from United States which is the key revenue generating market and Europe.
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