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Synageva BioPharma Corp (NAS:GEVA)
Quick Ratio
25.93 (As of Mar. 2015)

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 Inventory divides by its Total Current Liabilities. Synageva BioPharma Corp's quick ratio for the quarter that ended in Mar. 2015 was 25.93.

Synageva BioPharma Corp has a quick ratio of 25.93. It generally indicates good short-term financial strength.

Definition

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.

Synageva BioPharma Corp's Quick Ratio for the fiscal year that ended in Dec. 2014 is calculated as

 Quick Ratio (A: Dec. 2014 ) = (Total Current Assets - Inventory) / Total Current Liabilities = (457.832 - 0) / 25.243 = 18.14

Synageva BioPharma Corp's Quick Ratio for the quarter that ended in Mar. 2015 is calculated as

 Quick Ratio (Q: Mar. 2015 ) = (Total Current Assets - Inventory) / Total Current Liabilities = (722.278 - 0) / 27.852 = 25.93

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

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.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Synageva BioPharma Corp Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 quick ratio 6.04 7.01 12.55 9.06 8.51 10.12 7.83 17.21 29.94 18.14

Synageva BioPharma Corp Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 quick ratio 17.21 30.03 23.53 32.78 29.94 34.07 20.01 21.65 18.14 25.93
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