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. GPT Healthcare's quick ratio for the quarter that ended in Sep. 2023 was 0.80.
GPT Healthcare has a quick ratio of 0.80. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for GPT Healthcare's Quick Ratio or its related term are showing as below:
NSE:GPTHEALTH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.8 Med: 1.01 Max: 1.33
Current: 0.8
During the past 3 years, GPT Healthcare's highest Quick Ratio was 1.33. The lowest was 0.80. And the median was 1.01.
NSE:GPTHEALTH's Quick Ratio is ranked worse than 69.33% of 675
companies
in the Healthcare Providers & Services industry
Industry Median: 1.22
vs NSE:GPTHEALTH: 0.80
GPT Healthcare Quick Ratio Historical Data
The historical data trend for GPT Healthcare'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.
GPT Healthcare Quick Ratio Chart
GPT Healthcare Annual Data
Trend
Mar21
Mar22
Mar23
Quick Ratio
1.33
1.14
0.88
GPT Healthcare Quarterly Data
Mar21
Mar22
Sep22
Mar23
Sep23
Quick Ratio
1.33
1.14
-
0.88
0.80
Competitive Comparison of GPT Healthcare's Quick Ratio
For the Medical Care Facilities subindustry, GPT Healthcare'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.
GPT Healthcare's Quick Ratio Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, GPT Healthcare's Quick Ratio distribution charts can be found below:
* The bar in red indicates where GPT Healthcare's Quick Ratio falls into.
GPT Healthcare 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.
GPT Healthcare's Quick Ratio for the fiscal year that ended in Mar. 2023 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.
GPT Healthcare (NSE:GPTHEALTH) 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.
GPT Healthcare Quick Ratio Related Terms
Thank you for viewing the detailed overview of GPT Healthcare's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
GPT Healthcare (NSE:GPTHEALTH) Business Description
GPT Healthcare Ltd is engaged in healthcare sector. It operates a chain of mid-sized full service hospitals under the ILS brand and provide integrated healthcare services, with a focus on secondary and tertiary care and operates four multispecialty hospitals in Dum Dum, Salt Lake and Howrah in West Bengal and Agartala in Tripura with a total capacity of 561 beds. It offers a comprehensive range of healthcare services across over 35 specialties and super specialties, including internal medicine and diabetology, nephrology (including renal transplants), laparoscopic and general surgery, gynaecology and obstetrics, critical care, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurosurgery, paediatrics, and neonatology.
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