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THC Farmaceuticals has a quick ratio of 54.17. It generally indicates good short-term financial strength.
The historical rank and industry rank for THC Farmaceuticals's Quick Ratio or its related term are showing as below:
CBDG's Quick Ratio is not ranked *
in the Biotechnology industry.
Industry Median: 3.6 * Ranked among companies with meaningful Quick Ratio only.
THC Farmaceuticals (OTCPK:CBDG) 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.
THC Farmaceuticals Quick Ratio Related Terms
THC Farmaceuticals Quick Ratio Historical Data
* Premium members only.
The historical data trend for THC Farmaceuticals'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, THC Farmaceuticals'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.
THC Farmaceuticals Quick Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, THC Farmaceuticals's Quick Ratio distribution charts can be found below:
* The bar in red indicates where THC Farmaceuticals'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.
THC Farmaceuticals's Quick Ratio for the fiscal year that ended in Sep. 2013 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.
THC Farmaceuticals (CBDG) has a Quick Ratio of 54.17 as of Jun. 2018. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on THC Farmaceuticals and its competitors.
Is THC Farmaceuticals' Quick Ratio too high?
THC Farmaceuticals' current Quick Ratio is 54.17. The Biotechnology industry median Quick Ratio is 3.60. THC Farmaceuticals' value of 54.17 is 1404.7% above this industry median.
How does THC Farmaceuticals' Quick Ratio compare to BOXS?
THC Farmaceuticals' Quick Ratio of 54.17 can be compared against companies in the Biotechnology industry. The industry median Quick Ratio is 3.60. THC Farmaceuticals' value of 54.17 is 1404.7% above 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 Biotechnology company?
The median Quick Ratio among Biotechnology companies is 3.60, based on 1,411 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. THC Farmaceuticals's current Quick Ratio of 54.17 is 1404.7% above 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 THC Farmaceuticals and its competitors. For the Biotechnology industry, the median Quick Ratio is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. THC Farmaceuticals's current Quick Ratio is 54.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is THC Farmaceuticals stock overvalued right now?
THC Farmaceuticals (CBDG) has a current Quick Ratio of 54.17. The current Quick Ratio is 54.17 and 1404.7% above the Biotechnology industry median of 3.60. 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 THC Farmaceuticals (CBDG), the current Quick Ratio is 54.17 as of Jun. 2018. 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.
THC Farmaceuticals Inc is a clinical-stage biotechnology company specializing in the discovery, development, and commercialization of novel cannabinoid-based products in dental, ophthalmology, and other medical disciplines. It offers the combination of proprietary developments with the expertise of clinicians and scientists to unlock the therapeutic properties of cannabis and its bioactive compounds.
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