Magna International (Magna International) Quick Ratio : 0.71 (As of Dec. 2023)

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What is Magna International 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. Magna International's quick ratio for the quarter that ended in Dec. 2023 was 0.71.

Magna International has a quick ratio of 0.71. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Magna International's Quick Ratio or its related term are showing as below:

MGA' s Quick Ratio Range Over the Past 10 Years
Min: 0.71 Med: 0.86 Max: 1.18
Current: 0.71

During the past 13 years, Magna International's highest Quick Ratio was 1.18. The lowest was 0.71. And the median was 0.86.

MGA's Quick Ratio is ranked worse than
72.6% of 1310 companies
in the Vehicles & Parts industry
Industry Median: 1.045 vs MGA: 0.71

Magna International Quick Ratio Historical Data

The historical data trend for Magna International'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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Magna International Quick Ratio Chart

Magna International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Quick Ratio

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0.87

1.02

0.92

0.76

0.71

Magna International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Quick Ratio	Get a 7-Day Free Trial															0.76	0.89	0.77	0.75	0.71

Competitive Comparison of Magna International's Quick Ratio

For the Auto Parts subindustry, Magna International'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.

Magna International's Quick Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Magna International's Quick Ratio falls into.

Magna International 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.

Magna International's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(14037	-	4606)	/	13234
	=	0.71

Magna International's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(14037	-	4606)	/	13234
	=	0.71

Magna International (NYSE:MGA) 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.

Magna International Quick Ratio Related Terms

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Magna International (Magna International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Magna International Inc (NYSE:MGA) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

MGA N:Mexico MGA:Germany MGA:Germany MG:Canada

Address

337 Magna Drive, Aurora, ON, CAN, L4G 7K1

Website

https://www.magna.com

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2022, roughly 50% of Magna's revenue came from North America while Europe accounted for approximately 38%.