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. AAVAS Financiers's quick ratio for the quarter that ended in Mar. 2024 was 511.58.
AAVAS Financiers has a quick ratio of 511.58. It generally indicates good short-term financial strength.
The historical rank and industry rank for AAVAS Financiers's Quick Ratio or its related term are showing as below:
BOM:541988'
s Quick Ratio Range Over the Past 10 Years
Min: 0.23 Med: 9.23 Max: 511.58
Current: 511.58
During the past 11 years, AAVAS Financiers's highest Quick Ratio was 511.58. The lowest was 0.23. And the median was 9.23.
BOM:541988's Quick Ratio is ranked better than 86.96% of 46
companies
in the Banks industry
Industry Median: 2.125
vs BOM:541988: 511.58
AAVAS Financiers Quick Ratio Historical Data
The historical data trend for AAVAS Financiers'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 AAVAS Financiers's Quick Ratio
For the Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers's Quick Ratio Distribution in the Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's Quick Ratio distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers's Quick Ratio falls into.
AAVAS Financiers 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.
AAVAS Financiers's Quick Ratio for the fiscal year that ended in Mar. 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.
AAVAS Financiers (BOM:541988) 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.
AAVAS Financiers Quick Ratio Related Terms
Thank you for viewing the detailed overview of AAVAS Financiers's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AAVAS Financiers (BOM:541988) Business Description
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
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