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. Sequenom's quick ratio for the quarter that ended in Jun. 2016 was 3.16.
Sequenom has a quick ratio of 3.16. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sequenom's Quick Ratio or its related term are showing as below:
SQNM's Quick Ratio is not ranked *
in the Biotechnology industry.
Industry Median: 3.485 * Ranked among companies with meaningful Quick Ratio only.
Sequenom Quick Ratio Historical Data
The historical data trend for Sequenom'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.
For the Biotechnology subindustry, Sequenom'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.
Sequenom's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sequenom's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sequenom's Quick Ratio falls into.
Sequenom 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.
Sequenom's Quick Ratio for the fiscal year that ended in Dec. 2015 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.
Sequenom (NAS:SQNM) 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.
Sequenom Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sequenom's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sequenom Inc was incorporated in 1994 under the laws of the State of Delaware. It is a life science company providing revolutionary genomic and genetic analysis solutions for the molecular diagnostic and clinical research markets. It develop and commercialize molecular diagnostics testing services that target and serve molecular diagnostics markets, and also develop and commercialize research use genetic analysis products and services that target and serve discovery and clinical research markets. It offers its services and products in the United States and international emphasis in countries like European and Asia-Pacific regions. The Company operates in two operating segments; Sequenom Laboratories and Sequenom Bioscience. Sequenom Laboratories provides molecular based, laboratory developed tests, or LDTs, with a focus principally on prenatal diseases and conditions and ophthalmological diseases and conditions. Sequenom Bioscience provides technology and research tools for genetic analysis and applications in translational research, clinical research, pharmacogenomics, oncology, and agricultural genomics. The Company's competitors include; Ariosa Diagnostics, Inc., Beijing Genomics Institute, Cellscape Corp., Celula Inc., Ikonysis, Inc., Kellbenx, Inc., Laboratory Corporation of America Holdings, Inc., Natera, Perkin Elmer, Inc., Quest Laboratories, Verinata and others. Its patent portfolio, including in-licensed patent rights, includes approximately 638 issued or allowed patents in the United States and other industrial nations throughout the world. Its prenatal diagnostic patent portfolio includes exclusive rights to numerous in-licensed issued patents. The Company is subject to federal, state and local laws and regulations governing the use, storage, handling and disposal of such materials and chemicals, as well as certain waste products.
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