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. OSI Systems's quick ratio for the quarter that ended in Dec. 2023 was 0.80.
OSI Systems has a quick ratio of 0.80. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for OSI Systems's Quick Ratio or its related term are showing as below:
OSIS'
s Quick Ratio Range Over the Past 10 Years
Min: 0.58 Med: 0.93 Max: 1.2
Current: 0.8
During the past 13 years, OSI Systems's highest Quick Ratio was 1.20. The lowest was 0.58. And the median was 0.93.
OSIS's Quick Ratio is ranked worse than 82.93% of 2484
companies
in the Hardware industry
Industry Median: 1.48
vs OSIS: 0.80
OSI Systems Quick Ratio Historical Data
The historical data trend for OSI Systems'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 OSI Systems's Quick Ratio
For the Electronic Components subindustry, OSI Systems'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.
OSI Systems's Quick Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, OSI Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where OSI Systems's Quick Ratio falls into.
OSI Systems 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.
OSI Systems's Quick Ratio for the fiscal year that ended in Jun. 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.
OSI Systems (NAS:OSIS) 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.
OSI Systems Quick Ratio Related Terms
Thank you for viewing the detailed overview of OSI Systems's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
OSI Systems Inc is a designer and manufacturer of electronic systems and components for businesses in the homeland security, healthcare, defense, and aerospace markets. The firm is organized in three business segments: Security, which provides security and inspection systems; Healthcare, which provides patient monitoring, diagnostic, cardiology, ventilation systems and defibrillators; and Optoelectronics and Manufacturing, which provides specialized electronic components and manufacturing services for the Security and Healthcare segments and external original equipment manufacturers. Majority of the firm's revenue is generated in America, and the rest from Europe, the Middle East, and Africa, and the Asia Pacific regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
OSIS has been successfully added to your 