Labat AfricaJSE:LAB +66.67% Quick Ratio is 0.84 as of Nov. 2025, which is 5% below its 10-year median of 0.88. The stock has 5 warning signs investors should review. Among 997 Drug Manufacturers companies, Labat Africa ranks worse than 74.02% on this metric.
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. Labat Africa's quick ratio for the quarter that ended in Nov. 2025 was 0.84.
Labat Africa has a quick ratio of 0.84. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Labat Africa's Quick Ratio or its related term are showing as below:
JSE:LAB'
s Quick Ratio Range Over the Past 10 Years
Min: 0.55 Med: 0.88 Max: 1.39
Current: 0.84
During the past 13 years, Labat Africa's highest Quick Ratio was 1.39. The lowest was 0.55. And the median was 0.88.
JSE:LAB's Quick Ratio is ranked worse than 74.02% of 997
companies
in the Drug Manufacturers industry
Industry Median: 1.45
vs JSE:LAB: 0.84
Labat Africa (JSE:LAB) 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.
Labat Africa Quick Ratio Related Terms
Labat Africa Quick Ratio Historical Data
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The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Quick Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa's Quick Ratio for the fiscal year that ended in May. 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.
Labat Africa (JSE:LAB) has a Quick Ratio of 0.84 as of Nov. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Labat Africa and its competitors. This is near median its historical median of 0.88. Over the past decade, Labat Africa's Quick Ratio has ranged from 0.55 to 1.39. According to the industry distribution chart, Labat Africa ranks #738 out of 997 companies in the Drug Manufacturers industry, placing it in the top 74%.
Is Labat Africa's Quick Ratio too high?
Labat Africa's current Quick Ratio of 0.84 is near median its 10-year median of 0.88. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 1.39. The Drug Manufacturers industry median Quick Ratio is 1.45. Labat Africa's value of 0.84 is 42.1% below this industry median. Based on the distribution chart, Labat Africa ranks #738 out of 997 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Labat Africa's Quick Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #738 out of 997 companies for Quick Ratio. This places Labat Africa in the lower half of its industry. The industry median Quick Ratio is 1.45. Labat Africa's value of 0.84 is 42.1% below this benchmark. Historically, Labat Africa's own Quick Ratio has ranged from 0.55 to 1.39 over the past decade. While the company's 10-year median is 0.88 vs. the industry median of 1.45, Labat Africa has consistently been below the industry average. 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 Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.45, based on 997 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. Labat Africa's current Quick Ratio of 0.84 is 42.1% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Quick Ratio is 0.84, which is near median its own 10-year median of 0.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Quick Ratio is 0.84, which is near median its 10-year median of 0.88 and 42.1% below the Drug Manufacturers industry median of 1.45. 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 Labat Africa (JSE:LAB), the current Quick Ratio is 0.84 as of Nov. 2025. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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