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. BOC Kenya's quick ratio for the quarter that ended in Dec. 2022 was 3.35.
BOC Kenya has a quick ratio of 3.35. It generally indicates good short-term financial strength.
The historical rank and industry rank for BOC Kenya's Quick Ratio or its related term are showing as below:
NAI:BOC'
s Quick Ratio Range Over the Past 10 Years
Min: 1.62 Med: 1.85 Max: 3.35
Current: 3.35
During the past 11 years, BOC Kenya's highest Quick Ratio was 3.35. The lowest was 1.62. And the median was 1.85.
NAI:BOC's Quick Ratio is ranked better than 82.41% of 1569
companies
in the Chemicals industry
Industry Median: 1.41
vs NAI:BOC: 3.35
BOC Kenya Quick Ratio Historical Data
The historical data trend for BOC Kenya'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 Chemicals subindustry, BOC Kenya'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.
BOC Kenya's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, BOC Kenya's Quick Ratio distribution charts can be found below:
* The bar in red indicates where BOC Kenya's Quick Ratio falls into.
BOC Kenya 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.
BOC Kenya's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
BOC Kenya (NAI:BOC) 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.
BOC Kenya Quick Ratio Related Terms
Thank you for viewing the detailed overview of BOC Kenya's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
BOC Kenya PLC is engaged in the manufacture and sale of industrial gases, medical gases, and welding products. The company's segment based on regions consists of Kenya, Tanzania, and Uganda. Its product range consists of Bulk gases, Packaged gases, and Engineering services. Bulk gases include liquid oxygen and liquid nitrogen. Packaged gases comprise medical gases, industrial gases, and special gas mixtures, and liquefied petroleum gas. The engineering services include supplies of medical equipment, construction of medical and other gas pipelines, liquefied petroleum gas installations, tanks and pipelines, industrial gas storage and pipeline installations, and related maintenance services. The company generates majority of its revenue from the sale of medical and industrial gases.
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