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. SJM Holdings Co's quick ratio for the quarter that ended in Dec. 2023 was 2.92.
SJM Holdings Co has a quick ratio of 2.92. It generally indicates good short-term financial strength.
The historical rank and industry rank for SJM Holdings Co's Quick Ratio or its related term are showing as below:
XKRX:025530'
s Quick Ratio Range Over the Past 10 Years
Min: 2.71 Med: 3.38 Max: 4.63
Current: 2.92
During the past 13 years, SJM Holdings Co's highest Quick Ratio was 4.63. The lowest was 2.71. And the median was 3.38.
XKRX:025530's Quick Ratio is ranked better than 88.69% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 1.04
vs XKRX:025530: 2.92
SJM Holdings Co Quick Ratio Historical Data
The historical data trend for SJM Holdings Co'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 SJM Holdings Co's Quick Ratio
For the Auto Parts subindustry, SJM Holdings 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.
SJM Holdings Co's Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SJM Holdings Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SJM Holdings Co's Quick Ratio falls into.
SJM Holdings 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.
SJM Holdings Co's Quick Ratio for the fiscal year that ended in Dec. 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.
SJM Holdings Co (XKRX:025530) 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.
SJM Holdings Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of SJM Holdings Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SJM Holdings Co (XKRX:025530) Business Description
SJM Holdings Co Ltd is a Korea based holding company primarily engaged in the activities of financing, tax and management of contributed capital portfolio as the holding company. Through its subsidiary, the group is engaged in the automotive division and industrial division. The Automotive division includes the provision of technical solutions for noise, vibration and harshness. The Industrial division provides pipe systems with technologies. The other business activities of the group include special-metal trading, and investments and securities.
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