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. Gerresheimer AG's quick ratio for the quarter that ended in Feb. 2024 was 0.53.
Gerresheimer AG has a quick ratio of 0.53. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Gerresheimer AG's Quick Ratio or its related term are showing as below:
XTER:GXI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.37 Med: 0.56 Max: 0.85
Current: 0.53
During the past 13 years, Gerresheimer AG's highest Quick Ratio was 0.85. The lowest was 0.37. And the median was 0.56.
XTER:GXI's Quick Ratio is ranked worse than 90.22% of 869
companies
in the Medical Devices & Instruments industry
Industry Median: 2.02
vs XTER:GXI: 0.53
Gerresheimer AG Quick Ratio Historical Data
The historical data trend for Gerresheimer AG'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 Gerresheimer AG's Quick Ratio
For the Medical Instruments & Supplies subindustry, Gerresheimer AG'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.
Gerresheimer AG's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Gerresheimer AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Gerresheimer AG's Quick Ratio falls into.
Gerresheimer AG 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.
Gerresheimer AG's Quick Ratio for the fiscal year that ended in Nov. 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.
Gerresheimer AG (XTER:GXI) 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.
Gerresheimer AG Quick Ratio Related Terms
Thank you for viewing the detailed overview of Gerresheimer AG's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Gerresheimer AG provides medicine packaging, drug delivery devices, and solutions with a product range for pharma, health, well-being, and biotech. The firm operates in three segments: The plastics and devices segment consists of products for simple and safe drug delivery along with packaging for liquid and solid medicines, The primary packaging glass segment produces glass packaging products for the pharma and cosmetics industries also for food and beverage industry and The advanced technologies segment works on technical and digital solutions to improve the therapy outcome for patients. The company generates the majority of its revenue in Europe, with sales in Germany contributing the major proportion of any country.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XTER:GXI has been successfully added to your 