Response Plus Holding (ADX:RPM) Quick Ratio : 4.32 (As of Dec. 2023)

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What is Response Plus Holding Quick Ratio?

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. Response Plus Holding's quick ratio for the quarter that ended in Dec. 2023 was 4.32.

Response Plus Holding has a quick ratio of 4.32. It generally indicates good short-term financial strength.

The historical rank and industry rank for Response Plus Holding's Quick Ratio or its related term are showing as below:

ADX:RPM' s Quick Ratio Range Over the Past 10 Years
Min: 0.15 Med: 3.71 Max: 5.68
Current: 4.32

During the past 4 years, Response Plus Holding's highest Quick Ratio was 5.68. The lowest was 0.15. And the median was 3.71.

ADX:RPM's Quick Ratio is ranked better than
88.27% of 1074 companies
in the Oil & Gas industry
Industry Median: 1.11 vs ADX:RPM: 4.32

Response Plus Holding Quick Ratio Historical Data

The historical data trend for Response Plus Holding'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.

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Response Plus Holding Quick Ratio Chart

Response Plus Holding Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Quick Ratio

0.15

5.68

3.09

4.32

Response Plus Holding Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio	Get a 7-Day Free Trial			5.68	5.96	3.09	6.21	4.32

Competitive Comparison of Response Plus Holding's Quick Ratio

For the Oil & Gas Equipment & Services subindustry, Response Plus Holding'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.

Response Plus Holding's Quick Ratio Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Response Plus Holding's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Response Plus Holding's Quick Ratio falls into.

Response Plus Holding 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.

Response Plus Holding's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(244.168	-	9.839)	/	54.293
	=	4.32

Response Plus Holding's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(244.168	-	9.839)	/	54.293
	=	4.32

Response Plus Holding (ADX:RPM) 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.

Response Plus Holding Quick Ratio Related Terms

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Response Plus Holding (ADX:RPM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Response Plus Holding (ADX:RPM) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Burjeel Medical City, MBZ City, P.O. Box 130336, Zone D, 3rd Floor, Abu Dhabi, ARE

Website

https://rpm.ae

Response Plus Holding is engaged in the supply of manpower and medical equipment and the management of hospitals, clinics, and medical centers. The company's business activities are; healthcare services, investment in the healthcare-related business, investing in real estate and movables necessary for carrying out its activities, and management of affiliated companies. Geographically, it operates in the following markets; United Arab Emirates, Kingdom of Saudi Arabia, and Sultanate of Oman. Out of which a majority of its revenue comes from the United Arab Emirates market.