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. OMV Petrom's quick ratio for the quarter that ended in Mar. 2024 was 2.34.
OMV Petrom has a quick ratio of 2.34. It generally indicates good short-term financial strength.
The historical rank and industry rank for OMV Petrom's Quick Ratio or its related term are showing as below:
BSE:SNP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.51 Med: 1.53 Max: 2.65
Current: 2.34
During the past 13 years, OMV Petrom's highest Quick Ratio was 2.65. The lowest was 0.51. And the median was 1.53.
BSE:SNP's Quick Ratio is ranked better than 78.2% of 1078
companies
in the Oil & Gas industry
Industry Median: 1.1
vs BSE:SNP: 2.34
OMV Petrom Quick Ratio Historical Data
The historical data trend for OMV Petrom'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 OMV Petrom's Quick Ratio
For the Oil & Gas Integrated subindustry, OMV Petrom'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.
OMV Petrom's Quick Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, OMV Petrom's Quick Ratio distribution charts can be found below:
* The bar in red indicates where OMV Petrom's Quick Ratio falls into.
OMV Petrom 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.
OMV Petrom'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.
OMV Petrom (BSE:SNP) 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.
OMV Petrom Quick Ratio Related Terms
Thank you for viewing the detailed overview of OMV Petrom's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
OMV Petrom SA is an integrated oil and gas company operating in Romania. The company has three segments. The exploration & Production segment consists of the exploration, development, & production of crude oil, & natural gas. The refining & Marketing segment produces & delivers gasoline, diesel & other petroleum products to its customers, while through filling stations networks offers also a variety of services & non-oil business (NOB) goods. The gas business unit, part of the Gas & Power segment, has the objective to focus on gas sales, & becoming a regional player. Business division Power, part of the Gas & Power segment, mainly extends the gas value chain into a gas-fired power plant. The majority is from Refining & marketing segment. Geographically, key revenue is from Romania.
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