* 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 Xinxiang Chemical Fibre Co's Quick Ratio
For the Chemicals subindustry, Xinxiang Chemical Fibre Co'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.
Xinxiang Chemical Fibre Co's Quick Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Xinxiang Chemical Fibre Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Xinxiang Chemical Fibre Co's Quick Ratio falls into.
Xinxiang Chemical Fibre Co 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.
* 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.
Xinxiang Chemical Fibre Co (SZSE:000949) 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.
Xinxiang Chemical Fibre Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Xinxiang Chemical Fibre Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Xinxiang Chemical Fibre Co (SZSE:000949) Business Description
Xinxiang Chemical Fibre Co Ltd specializes in producing chemical fiber textile raw materials in China. Their main products are centrifugal viscose rayon filament yarn, continuous viscose rayon filament yarn, viscose staple fiber, and polyester. The company's products are not only sold in the Chinese market but also exported to more than 30 countries and regions such as Germany, Italy, Japan, South Korea and India.
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