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. ProPhase Labs's quick ratio for the quarter that ended in Dec. 2023 was 2.10.
ProPhase Labs has a quick ratio of 2.10. It generally indicates good short-term financial strength.
The historical rank and industry rank for ProPhase Labs's Quick Ratio or its related term are showing as below:
PRPH'
s Quick Ratio Range Over the Past 10 Years
Min: 1.01 Med: 2.82 Max: 14.84
Current: 2.1
During the past 13 years, ProPhase Labs's highest Quick Ratio was 14.84. The lowest was 1.01. And the median was 2.82.
PRPH's Quick Ratio is ranked better than 54.2% of 238
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.885
vs PRPH: 2.10
ProPhase Labs Quick Ratio Historical Data
The historical data trend for ProPhase Labs'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 ProPhase Labs's Quick Ratio
For the Diagnostics & Research subindustry, ProPhase Labs'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.
ProPhase Labs's Quick Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, ProPhase Labs's Quick Ratio distribution charts can be found below:
* The bar in red indicates where ProPhase Labs's Quick Ratio falls into.
ProPhase Labs 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.
ProPhase Labs's Quick Ratio for the fiscal year that ended in Dec. 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.
ProPhase Labs (NAS:PRPH) 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.
ProPhase Labs Quick Ratio Related Terms
Thank you for viewing the detailed overview of ProPhase Labs's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ProPhase Labs (ProPhase Labs) Business Description
ProPhase Labs Inc is a diversified company that offers a range of services including diagnostic testing, genomics testing and contract manufacturing. Its operating segments include Diagnostic services and Consumer products. The Diagnostic services segment provides COVID-19 diagnostic information services to a broad range of customers in the United States, including health plans, third-party payers and government organizations. The Consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States and also provide personal genomics products and services.
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