CVHIF (Ventura Cannabis and Wellness) Quick Ratio : 2.63 (As of May. 2020)

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What is Ventura Cannabis and Wellness 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. Ventura Cannabis and Wellness's quick ratio for the quarter that ended in May. 2020 was 2.63.

Ventura Cannabis and Wellness has a quick ratio of 2.63. It generally indicates good short-term financial strength.

The historical rank and industry rank for Ventura Cannabis and Wellness's Quick Ratio or its related term are showing as below:

CVHIF's Quick Ratio is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 1.31
* Ranked among companies with meaningful Quick Ratio only.

Ventura Cannabis and Wellness Quick Ratio Historical Data

The historical data trend for Ventura Cannabis and Wellness'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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Ventura Cannabis and Wellness Quick Ratio Chart

Ventura Cannabis and Wellness Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Nov14

Nov15

Feb17

Feb18

Feb19

Feb20

Quick Ratio

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9.14

2.67

1.62

1.77

2.35

Ventura Cannabis and Wellness Quarterly Data
	May15	Aug15	Nov15	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20
Quick Ratio	Get a 7-Day Free Trial															1.80	2.20	2.09	2.35	2.63

Competitive Comparison of Ventura Cannabis and Wellness's Quick Ratio

For the Drug Manufacturers - Specialty & Generic subindustry, Ventura Cannabis and Wellness'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.

Ventura Cannabis and Wellness's Quick Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Ventura Cannabis and Wellness's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Ventura Cannabis and Wellness's Quick Ratio falls into.

Ventura Cannabis and Wellness 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.

Ventura Cannabis and Wellness's Quick Ratio for the fiscal year that ended in Feb. 2020 is calculated as

Quick Ratio (A: Feb. 2020 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(6.414	-	0.103)	/	2.683
	=	2.35

Ventura Cannabis and Wellness's Quick Ratio for the quarter that ended in May. 2020 is calculated as

Quick Ratio (Q: May. 2020 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(5.094	-	0.089)	/	1.9
	=	2.63

Ventura Cannabis and Wellness (OTCPK:CVHIF) 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.

Ventura Cannabis and Wellness Quick Ratio Related Terms

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Ventura Cannabis and Wellness Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ventura Cannabis and Wellness Corp (OTCPK:CVHIF) » Definitions » Quick Ratio

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Traded in Other Exchanges

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Address

800 W. 6th St, Suite 1415, Los Angeles, CA, USA, 90017

Website

http://www.venturacanna.com

Ventura Cannabis and Wellness Corp is a vertically integrated, California-based products cannabis company. The company is currently building out its distribution channel through revenue-sharing agreements with owner-operator of cannabis dispensaries to ensure it's products get premium shelf space. The Company plans to target four segments in the U.S. cannabis and CBD market with products suited to their needs: senior citizens, upwardly mobile middle-aged female professionals, upwardly mobile middle-aged male professionals and individuals suffering from addiction. These segments desire discrete and well-designed products as well as the accurate dosage of THC.