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. Industria De Diseno Textil's quick ratio for the quarter that ended in Jan. 2024 was 1.46.
Industria De Diseno Textil has a quick ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Industria De Diseno Textil's Quick Ratio or its related term are showing as below:
IDEXY'
s Quick Ratio Range Over the Past 10 Years
Min: 1.25 Med: 1.38 Max: 1.47
Current: 1.46
During the past 13 years, Industria De Diseno Textil's highest Quick Ratio was 1.47. The lowest was 1.25. And the median was 1.38.
IDEXY's Quick Ratio is ranked better than 72.45% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.865
vs IDEXY: 1.46
Industria De Diseno Textil Quick Ratio Historical Data
The historical data trend for Industria De Diseno Textil'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 Industria De Diseno Textil's Quick Ratio
For the Apparel Retail subindustry, Industria De Diseno Textil'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.
Industria De Diseno Textil's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Industria De Diseno Textil's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Industria De Diseno Textil's Quick Ratio falls into.
Industria De Diseno Textil 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.
Industria De Diseno Textil's Quick Ratio for the fiscal year that ended in Jan. 2024 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.
Industria De Diseno Textil (OTCPK:IDEXY) 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.
Industria De Diseno Textil Quick Ratio Related Terms
Thank you for viewing the detailed overview of Industria De Diseno Textil's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Industria De Diseno Textil (Industria De Diseno Textil) Business Description
Inditex is a multibrand fashion conglomerate, founded in 1985. Zara is its flagship brand (including Zara Home), generating just over 70% of revenue and 75% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through 5,800-plus stores globally, over 1,800 of them belonging to the Zara brand. Sixty-five percent of revenue is generated in the European home market, while the Americas and Asia contribute 20% and 14%, respectively. The company keeps design in house while mostly outsourcing manufacturing (own manufacturing constitutes only a low-single-digit percentage of output). Over 50% of sourcing factories are in proximity to the company's headquarters in Spain.
Industria De Diseno Textil (Industria De Diseno Textil) Headlines
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