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. Aerocrine AB's quick ratio for the quarter that ended in Mar. 2015 was 12.09.
Aerocrine AB has a quick ratio of 12.09. It generally indicates good short-term financial strength.
The historical rank and industry rank for Aerocrine AB's Quick Ratio or its related term are showing as below:
FRA:A0C's Quick Ratio is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 2.02 * Ranked among companies with meaningful Quick Ratio only.
Aerocrine AB Quick Ratio Historical Data
The historical data trend for Aerocrine AB'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.
Competitive Comparison of Aerocrine AB's Quick Ratio
For the Medical Devices subindustry, Aerocrine AB'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.
Aerocrine AB's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Aerocrine AB's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Aerocrine AB's Quick Ratio falls into.
Aerocrine AB 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.
Aerocrine AB's Quick Ratio for the fiscal year that ended in Dec. 2014 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.
Aerocrine AB (FRA:A0C) 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.
Aerocrine AB Quick Ratio Related Terms
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Aerocrine AB is a medical technology company focused on improving the treatment of patients with inflamed airways. The company offers exhaled nitric oxide (NO) monitoring devices for research and clinical applications. Aerocrine's devices utilize methods for measuring minute concentrations of NO, and incorporate NO scrubbers to eliminate atmospheric NO from the patient's breath. Measuring NO values helps doctors differentiate asthma from similar conditions, and differentiate various forms of asthma from other airway diseases. The company markets two products globally namely NIOX Flex and NIOX MINO. These products are widely used by primary care asthma specialists in Europe, and have recently gained US regulatory approval. Distribution agreements have also been signed in Japan, and regulatory approval has been secured in China. The company has offices and subsidiaries in Sweden, Germany, the United States, and the United Kingdom. The parent company is located in Solna, Sweden, and has sales enterprises in Sweden, Germany, the United States, and the United Kingdom. NIOX was replaced by its successor, NIOX FLEX in 2007. NIOX FLEX was the first tailor-made device for measuring exhaled nitric oxide (NO). NIOX FLEX includes enhanced data handling facilities, add-on research kits, and USB ports for communication. Moreover, a new application, NIOX Flex Flow, can determine whether lung inflammation is located centrally or more peripherally, which can be highly significant to therapy choices. The Nasal Research Kit allows measurement of nasal NO, while the FlexFlo Research Kit enables measurement of exhaled NO at variable flow rates, to help identify the location of inflammation. NIOX MINO is a compact hand-held device, marketed for smaller clinics, healthcare centers, and hospitals. NIOX MINO is intended for routine measurements of NO. Patients hold the NIOX MINO and breathe into the mouthpiece. An audible tone helps patient maintain the right flow during exhalation, whereupon results are displayed on the front of the device.
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