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. Arem Pacific's quick ratio for the quarter that ended in Mar. 2024 was 0.65.
Arem Pacific has a quick ratio of 0.65. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Arem Pacific's Quick Ratio or its related term are showing as below:
ARPC's Quick Ratio is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 1.32 * Ranked among companies with meaningful Quick Ratio only.
Arem Pacific (OTCPK:ARPC) 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.
Arem Pacific Quick Ratio Related Terms
Arem Pacific Quick Ratio Historical Data
* Premium members only.
The historical data trend for Arem Pacific'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 Medical Care Facilities subindustry, Arem Pacific'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.
Arem Pacific Quick Ratio vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Arem Pacific's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Arem Pacific's Quick Ratio falls into.
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.
Arem Pacific'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.
Arem Pacific (ARPC) has a Quick Ratio of 0.65 as of Mar. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Arem Pacific and its competitors.
Is Arem Pacific's Quick Ratio too high?
Arem Pacific's current Quick Ratio is 0.65. The Healthcare Providers & Services industry median Quick Ratio is 1.32. Arem Pacific's value of 0.65 is 50.8% below this industry median.
How does Arem Pacific's Quick Ratio compare to GBNHF and FCHS?
Arem Pacific's Quick Ratio of 0.65 can be compared against companies in the Healthcare Providers & Services industry. The industry median Quick Ratio is 1.32. Arem Pacific's value of 0.65 is 50.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Healthcare Providers & Services company?
The median Quick Ratio among Healthcare Providers & Services companies is 1.32, based on 683 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arem Pacific's current Quick Ratio of 0.65 is 50.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Arem Pacific and its competitors. For the Healthcare Providers & Services industry, the median Quick Ratio is 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arem Pacific's current Quick Ratio is 0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arem Pacific stock overvalued right now?
Arem Pacific (ARPC) has a current Quick Ratio of 0.65. The current Quick Ratio is 0.65 and 50.8% below the Healthcare Providers & Services industry median of 1.32. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Arem Pacific (ARPC), the current Quick Ratio is 0.65 as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arem Pacific Corporation is engaged in providing wellness services. The company operates in one industry and one geographical segment, those being Oriental holistic health services and Australia. The Wellness center provides services including Acupressure/Reflexology which is acupuncture without needles, Massage Therapy involving application of soft-tissue manipulation techniques to the body and Cupping involving warming of glass cups through a flammable substance. It also offers Neck, shoulder, back, legs, full body massages and deep tissue and hot oil massage. It derives revenues through the provision of therapeutic health services from its Oriental holistic health centres.
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