Skyline Builders Ordinary Shares(Skbl) Financials: Quick Ratio Compared To Industry Average, Plus Other Key Ratios
Liquidity Trend (Last 5 Years)
Liquidity - quick ratio
This chart shows the historical trend of quick ratio for SKBL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Quick Ratio
Definition: The quick ratio is like an emergency response measure: can the company pay off short-term debts without selling any inventory? It only counts cash, short-term investments, and receivables — assets that can quickly be turned into cash. A healthy quick ratio shows strong liquidity. A very low quick ratio means the company depends on selling inventory to meet short-term obligations — which can be risky if sales unexpectedly slow down.
Interpretation:
• In '2023', SKBL's quick ratio was 0.58, providing a stringent test of short-term liquidity. Industry average for Engineering & Construction in '2023' stood at 1.14.
• In '2024', SKBL's quick ratio was 0.75, providing a stringent test of short-term liquidity. The increase since '2023' reflects strengthening financial performance. Industry average for Engineering & Construction in '2024' stood at 1.08. Industry average declined by 0.05 from previous year.
Overall, SKBL's quick ratio has been volatile but showed an upward trend over the past 2 years.
Formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Good Range: Normally between 0.8 and 1.5.