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. NextCure's quick ratio for the quarter that ended in Dec. 2023 was 16.38.
NextCure has a quick ratio of 16.38. It generally indicates good short-term financial strength.
The historical rank and industry rank for NextCure's Quick Ratio or its related term are showing as below:
NXTC'
s Quick Ratio Range Over the Past 10 Years
Min: 3.02 Med: 17.97 Max: 34.48
Current: 16.38
During the past 7 years, NextCure's highest Quick Ratio was 34.48. The lowest was 3.02. And the median was 17.97.
NXTC's Quick Ratio is ranked better than 90.73% of 1554
companies
in the Biotechnology industry
Industry Median: 3.515
vs NXTC: 16.38
NextCure Quick Ratio Historical Data
The historical data trend for NextCure'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.
For the Biotechnology subindustry, NextCure'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.
NextCure's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, NextCure's Quick Ratio distribution charts can be found below:
* The bar in red indicates where NextCure's Quick Ratio falls into.
NextCure 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.
NextCure's Quick Ratio for the fiscal year that ended in Dec. 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.
NextCure (NAS:NXTC) 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.
NextCure Quick Ratio Related Terms
Thank you for viewing the detailed overview of NextCure's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NextCure Inc is a clinical-stage biopharmaceutical company committed to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function. The company's product candidates include NC410 a fusion protein of LAIR-2, a naturally occurring soluble version of and decoy protein for LAIR-1 and is designed to block immune suppression mediated by LAIR-1, NC762 a monoclonal antibody that binds specifically to human B7 homolog 4 protein, or B7-H4, a protein expressed on multiple tumor types, and NC525 (LAIR-1 mAb) is a novel LAIR-1 antibody that selectively targets Acute Myeloid Leukemia, or AML, blast cells, and leukemic stem cells, or LSCs.
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