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. Ocwen Financial's quick ratio for the quarter that ended in Dec. 2023 was 44.54.
Ocwen Financial has a quick ratio of 44.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ocwen Financial's Quick Ratio or its related term are showing as below:
OCN'
s Quick Ratio Range Over the Past 10 Years
Min: 6.19 Med: 19.31 Max: 44.54
Current: 44.54
During the past 13 years, Ocwen Financial's highest Quick Ratio was 44.54. The lowest was 6.19. And the median was 19.31.
OCN's Quick Ratio is ranked better than 75.56% of 45
companies
in the Banks industry
Industry Median: 2.74
vs OCN: 44.54
Ocwen Financial Quick Ratio Historical Data
The historical data trend for Ocwen Financial'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 Ocwen Financial's Quick Ratio
For the Mortgage Finance subindustry, Ocwen Financial'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.
Ocwen Financial's Quick Ratio Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Ocwen Financial's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ocwen Financial's Quick Ratio falls into.
Ocwen Financial 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.
Ocwen Financial'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.
Ocwen Financial (NYSE:OCN) 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.
Ocwen Financial Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ocwen Financial's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ocwen Financial (Ocwen Financial) Business Description
Ocwen Financial Corp is a financial service company that services and originates loans. Its business segment includes Servicing and Lending. Servicing segment provides residential and commercial mortgage loan servicing, special servicing and asset management services. Lending segment originates and purchases conventional and government-insured residential forward and reverse mortgage loans mainly through correspondent lending arrangements, broker relationships and directly with mortgage customers. The company generates a majority of its revenue from the Servicing segment. Geographically, it generates a majority of its revenue from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
OCN has been successfully added to your 