GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Cannara Biotech Inc (OTCPK:LOVFF) » Definitions » Quick Ratio

LOVFF (Cannara Biotech) Quick Ratio : 1.01 (As of Aug. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Cannara Biotech 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. Cannara Biotech's quick ratio for the quarter that ended in Aug. 2024 was 1.01.

Cannara Biotech has a quick ratio of 1.01. It generally indicates good short-term financial strength.

The historical rank and industry rank for Cannara Biotech's Quick Ratio or its related term are showing as below:

LOVFF' s Quick Ratio Range Over the Past 10 Years
Min: 0.85   Med: 1.86   Max: 11.59
Current: 1.01

During the past 7 years, Cannara Biotech's highest Quick Ratio was 11.59. The lowest was 0.85. And the median was 1.86.

LOVFF's Quick Ratio is ranked worse than
62.71% of 1035 companies
in the Drug Manufacturers industry
Industry Median: 1.4 vs LOVFF: 1.01

Cannara Biotech Quick Ratio Historical Data

The historical data trend for Cannara Biotech'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.

* Premium members only.

Cannara Biotech Quick Ratio Chart

Cannara Biotech Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Quick Ratio
Get a 7-Day Free Trial 2.38 1.73 1.86 0.85 1.01

Cannara Biotech Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.85 0.72 0.36 0.92 1.01

Competitive Comparison of Cannara Biotech's Quick Ratio

For the Drug Manufacturers - Specialty & Generic subindustry, Cannara Biotech'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.


Cannara Biotech's Quick Ratio Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Cannara Biotech's Quick Ratio falls into.



Cannara Biotech 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.

Cannara Biotech's Quick Ratio for the fiscal year that ended in Aug. 2024 is calculated as

Quick Ratio (A: Aug. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(49.413-29.347)/19.774
=1.01

Cannara Biotech's Quick Ratio for the quarter that ended in Aug. 2024 is calculated as

Quick Ratio (Q: Aug. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(49.413-29.347)/19.774
=1.01

* 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.


Cannara Biotech  (OTCPK:LOVFF) 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.


Cannara Biotech Quick Ratio Related Terms

Thank you for viewing the detailed overview of Cannara Biotech's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Cannara Biotech Business Description

Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 2050, Vancouver, BC, CAN, V6E 3P3
Cannara Biotech Inc is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for Canadian markets. The company owns two mega Quebec-based facilities. The company operates in in two segments; Indoor cannabis operations segment which includes the cultivation, processing and sale of dried cannabis and cannabis derivatives for the Canadian market and the Real estate operations segment related to the Farnham and Valleyfield building. Majority of the revenue for the company is generated from its Cannabis operations segment. .