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. Orix Jreit's quick ratio for the quarter that ended in Aug. 2023 was 1.14.
Orix Jreit has a quick ratio of 1.14. It generally indicates good short-term financial strength.
The historical rank and industry rank for Orix Jreit's Quick Ratio or its related term are showing as below:
TSE:8954'
s Quick Ratio Range Over the Past 10 Years
Min: 0.95 Med: 1.2 Max: 1.83
Current: 1.14
During the past 13 years, Orix Jreit's highest Quick Ratio was 1.83. The lowest was 0.95. And the median was 1.20.
TSE:8954's Quick Ratio is ranked better than 55.99% of 718
companies
in the REITs industry
Industry Median: 0.945
vs TSE:8954: 1.14
Orix Jreit Quick Ratio Historical Data
The historical data trend for Orix Jreit'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 Orix Jreit's Quick Ratio
For the REIT - Office subindustry, Orix Jreit'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.
Orix Jreit's Quick Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Orix Jreit's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Orix Jreit's Quick Ratio falls into.
Orix Jreit 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.
Orix Jreit's Quick Ratio for the fiscal year that ended in Aug. 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.
Orix Jreit (TSE:8954) 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.
Orix Jreit Quick Ratio Related Terms
Thank you for viewing the detailed overview of Orix Jreit's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Orix Jreit Inc is a real estate investment trust engaged in the acquisition, ownership, and leasing of properties throughout Japan. In terms of asset acquisition price, the majority of the company's real estate portfolio comprises office buildings. Retail facilities and residential properties together also make up a considerable percentage of this portfolio. Orix JREIT's real estate assets are mostly located in the Greater Tokyo area, with those in the Central Wards of Tokyo representing the largest geographic segment in terms of property acquisition price. The company derives nearly all of its income in the form of rental revenue from tenants. Finance and real estate, transportation, and retail companies are Orix JREIT's major customers.
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