WellCare Health Plans has a quick ratio of 1.16. It generally indicates good short-term financial strength.
The historical rank and industry rank for WellCare Health Plans's Quick Ratio or its related term are showing as below:
WCG's Quick Ratio is not ranked *
in the Healthcare Plans industry.
Industry Median: 1.24 * Ranked among companies with meaningful Quick Ratio only.
WellCare Health Plans Quick Ratio Historical Data
The historical data trend for WellCare Health Plans'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 WellCare Health Plans's Quick Ratio
For the Healthcare Plans subindustry, WellCare Health Plans'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.
WellCare Health Plans's Quick Ratio Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, WellCare Health Plans's Quick Ratio distribution charts can be found below:
* The bar in red indicates where WellCare Health Plans's Quick Ratio falls into.
WellCare Health Plans 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.
WellCare Health Plans's Quick Ratio for the fiscal year that ended in Dec. 2018 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.
WellCare Health Plans (NYSE:WCG) 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.
WellCare Health Plans Quick Ratio Related Terms
Thank you for viewing the detailed overview of WellCare Health Plans's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
WellCare Health Plans (WellCare Health Plans) Business Description
WellCare Health Plans Inc is a managed care organization focused on government-sponsored managed care services, including Medicare and Medicaid. WellCare's membership is concentrated in Florida, Georgia, Kentucky, New York, and Illinois. Its key segments are Medicaid health plans, Medicare health plans, and Medicare prescription drug plans. Medicaid health plans represent the largest proportion of both total membership and premium revenue. The Medicaid segment generates revenue from the premiums received from the states in which health plans are offered, based on a fixed per-member per-month amount. WellCare also provides Medicare Part C and Part D benefits through its Medicare Advantage plans.
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