iRhythm Technologies has a quick ratio of 5.70. It generally indicates good short-term financial strength.
The historical rank and industry rank for iRhythm Technologies's Quick Ratio or its related term are showing as below:
IRTC'
s Quick Ratio Range Over the Past 10 Years
Min: 2.02 Med: 3.49 Max: 8.87
Current: 5.7
During the past 11 years, iRhythm Technologies's highest Quick Ratio was 8.87. The lowest was 2.02. And the median was 3.49.
IRTC's Quick Ratio is ranked better than 83.83% of 872
companies
in the Medical Devices & Instruments industry
Industry Median: 1.91
vs IRTC: 5.70
iRhythm Technologies Quick Ratio Historical Data
The historical data trend for iRhythm Technologies'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 iRhythm Technologies's Quick Ratio
For the Medical Devices subindustry, iRhythm Technologies'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.
iRhythm Technologies's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, iRhythm Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where iRhythm Technologies'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.
iRhythm Technologies's Quick Ratio for the fiscal year that ended in Dec. 2024 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.
iRhythm Technologies (NAS:IRTC) 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.
iRhythm Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of iRhythm Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
iRhythm Technologies Inc is a digital healthcare company that creates trusted solutions that detect, predict, and prevent disease. Its principal business is the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services that it believes allow clinicians to diagnose certain arrhythmias quicker and with greater efficiency than other services that rely on traditional technology. Each Zio System combines an FDA-cleared and CE-marked, wire-free, patch-based, 14-day wearable biosensor that continuously records electrocardiogram (ECG) data with a proprietary, FDA-cleared, CE-marked cloud-based data analytic software to help physicians monitor patients and diagnose arrhythmias.
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