Inspiration Healthcare Group (LSE:IHC) Cash Ratio : 0.24 (As of Jul. 2023)

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What is Inspiration Healthcare Group Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Inspiration Healthcare Group's Cash Ratio for the quarter that ended in Jul. 2023 was 0.24.

Inspiration Healthcare Group has a Cash Ratio of 0.24. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.

The historical rank and industry rank for Inspiration Healthcare Group's Cash Ratio or its related term are showing as below:

LSE:IHC' s Cash Ratio Range Over the Past 10 Years
Min: 0.24 Med: 0.92 Max: 3.79
Current: 0.24

During the past 13 years, Inspiration Healthcare Group's highest Cash Ratio was 3.79. The lowest was 0.24. And the median was 0.92.

LSE:IHC's Cash Ratio is ranked worse than
81.54% of 856 companies
in the Medical Devices & Instruments industry
Industry Median: 1.2 vs LSE:IHC: 0.24

Inspiration Healthcare Group Cash Ratio Historical Data

The historical data trend for Inspiration Healthcare Group's Cash 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.

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Inspiration Healthcare Group Cash Ratio Chart

Inspiration Healthcare Group Annual Data

Trend

Dec14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Cash Ratio

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1.00

0.99

1.38

1.20

0.25

Inspiration Healthcare Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Cash Ratio	Get a 7-Day Free Trial															1.42	1.20	0.36	0.25	0.24

Competitive Comparison of Inspiration Healthcare Group's Cash Ratio

For the Medical Devices subindustry, Inspiration Healthcare Group's Cash Ratio, along with its competitors' market caps and Cash 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.

Inspiration Healthcare Group's Cash Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Inspiration Healthcare Group's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Inspiration Healthcare Group's Cash Ratio falls into.

Inspiration Healthcare Group Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

Inspiration Healthcare Group's Cash Ratio for the fiscal year that ended in Jan. 2023 is calculated as:

Cash Ratio (A: Jan. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	2.276	/	9.244
	=	0.25

Inspiration Healthcare Group's Cash Ratio for the quarter that ended in Jul. 2023 is calculated as:

Cash Ratio (Q: Jul. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	1.948	/	8.068
	=	0.24

Inspiration Healthcare Group (LSE:IHC) Cash Ratio Explanation

The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.

The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.

In general, the higher the cash ratio, the better the company's liquidity position.

Inspiration Healthcare Group Cash Ratio Related Terms

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Inspiration Healthcare Group (LSE:IHC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inspiration Healthcare Group PLC (LSE:IHC) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 7/8 Commerce Park, Commerce Way, Croydon, GBR, CR0 4YL

Website

https://www.inspirationhealthcaregroup.com

Inspiration Healthcare Group PLC supplies outcome-improving medical devices in the areas of neonatal intensive care and patient warming. It operates in the Critical Care Medical Devices segment which includes Critical Care, Operating Theatre, and Home Healthcare. The company derives the maximum of its revenue from the United Kingdom through the Critical Care market division.