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. Oventus Medical's quick ratio for the quarter that ended in Dec. 2021 was 3.52.
Oventus Medical has a quick ratio of 3.52. It generally indicates good short-term financial strength.
The historical rank and industry rank for Oventus Medical's Quick Ratio or its related term are showing as below:
ASX:OVN's Quick Ratio is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 2.02 * Ranked among companies with meaningful Quick Ratio only.
Oventus Medical Quick Ratio Historical Data
The historical data trend for Oventus Medical'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 Oventus Medical's Quick Ratio
For the Medical Devices subindustry, Oventus Medical'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.
Oventus Medical's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Oventus Medical's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Oventus Medical's Quick Ratio falls into.
Oventus Medical 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.
Oventus Medical's Quick Ratio for the fiscal year that ended in Jun. 2021 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.
Oventus Medical (ASX:OVN) 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.
Oventus Medical Quick Ratio Related Terms
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Oventus Medical Ltd is a medical device company. It is engaged in developing an oral appliance for the treatment of sleep apnoea and snoring. Its product includes O2Vent Optima . It offers oral appliance therapy, especially beneficial for the many people that suffer from nasal congestion, obstruction, and mouth breathing. The firm has two operating segments: Australia and North America.
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