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What is Litigation Capital Management Quick Ratio?
Litigation Capital ManagementLSE:LIT -3.44% Quick Ratio is 13.37 as of Dec. 2025, which is 107% above its 10-year median of 6.47. The stock has 5 warning signs investors should review. Among 396 Credit Services companies, Litigation Capital Management ranks better than 59.09% on this metric.
Litigation Capital Management has a quick ratio of 13.37. It generally indicates good short-term financial strength.
The historical rank and industry rank for Litigation Capital Management's Quick Ratio or its related term are showing as below:
LSE:LIT'
s Quick Ratio Range Over the Past 10 Years
Min: 0.95 Med: 6.47 Max: 37.99
Current: 13.37
During the past 10 years, Litigation Capital Management's highest Quick Ratio was 37.99. The lowest was 0.95. And the median was 6.47.
LSE:LIT's Quick Ratio is ranked better than 59.09% of 396
companies
in the Credit Services industry
Industry Median: 4.71
vs LSE:LIT: 13.37
Litigation Capital Management (LSE:LIT) 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.
Litigation Capital Management Quick Ratio Related Terms
Litigation Capital Management Quick Ratio Historical Data
* 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.
For the Credit Services subindustry, Litigation Capital Management'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.
Litigation Capital Management Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Litigation Capital Management's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Litigation Capital Management's Quick Ratio falls into.
Litigation Capital Management 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.
* 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.
Litigation Capital Management (LSE:LIT) has a Quick Ratio of 13.37 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Litigation Capital Management and its competitors. This is 107% above median its historical median of 6.47. Over the past decade, Litigation Capital Management's Quick Ratio has ranged from 0.95 to 37.99. According to the industry distribution chart, Litigation Capital Management ranks #162 out of 396 companies in the Credit Services industry, placing it in the top 40.9%.
Is Litigation Capital Management's Quick Ratio too high?
Litigation Capital Management's current Quick Ratio of 13.37 is 107% above median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 37.99. The Credit Services industry median Quick Ratio is 4.71. Litigation Capital Management's value of 13.37 is 183.9% above this industry median. Based on the distribution chart, Litigation Capital Management ranks #162 out of 396 companies in the Credit Services industry, which is above the industry midpoint.
How does Litigation Capital Management's Quick Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Litigation Capital Management ranks #162 out of 396 companies for Quick Ratio. This puts Litigation Capital Management in the upper half of its industry. The industry median Quick Ratio is 4.71. Litigation Capital Management's value of 13.37 is 183.9% above this benchmark. Historically, Litigation Capital Management's own Quick Ratio has ranged from 0.95 to 37.99 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 4.71, Litigation Capital Management has consistently been above 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 Credit Services company?
The median Quick Ratio among Credit Services companies is 4.71, based on 396 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. Litigation Capital Management's current Quick Ratio of 13.37 is 183.9% above 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 Litigation Capital Management and its competitors. For the Credit Services industry, the median Quick Ratio is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litigation Capital Management's current Quick Ratio is 13.37, which is 107% above median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litigation Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Litigation Capital Management (LSE:LIT) is currently considered Possible Value Trap. The stock's GF Value™ is £0.23, compared to a current price of £0.02 — trading 92.9% below its estimated fair value. The current Quick Ratio is 13.37, which is 107% above median its 10-year median of 6.47 and 183.9% above the Credit Services industry median of 4.71. 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 Litigation Capital Management (LSE:LIT), the current Quick Ratio is 13.37 as of Dec. 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.
Litigation Capital Management Business Description
Litigation Capital Management Ltd is an alternative asset manager specialising in dispute financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital, and the second is third-party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding, and Acquisitions of claims. LCM generates its income from both its direct investments and performance fees through asset management. The group's operating segments are Fund, which generates maximum income, and LCM.
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