Performant Healthcare (NAS:PHLT) 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.
Performant Healthcare Quick Ratio Related Terms
Performant Healthcare Quick Ratio Historical Data
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The historical data trend for Performant 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.
For the Health Information Services subindustry, Performant 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.
Performant Healthcare Quick Ratio vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Performant Healthcare's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Performant Healthcare'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.
Performant Healthcare's Quick Ratio for the fiscal year that ended in Dec. 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.
Performant Healthcare (PHLT) has a Quick Ratio of 2.64 as of Jun. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Performant Healthcare and its competitors. This is 26% above median its historical median of 2.09. Over the past decade, Performant Healthcare's Quick Ratio has ranged from 0.65 to 4.22.
Is Performant Healthcare's Quick Ratio too high?
Performant Healthcare's current Quick Ratio of 2.64 is 26% above median its 10-year median of 2.09. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 4.22. The Healthcare Providers & Services industry median Quick Ratio is 1.32. Performant Healthcare's value of 2.64 is 100% above this industry median. Overall, Performant Healthcare has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Performant Healthcare's Quick Ratio compare to WEAV and HSTM?
Performant Healthcare's Quick Ratio of 2.64 can be compared against companies in the Healthcare Providers & Services industry. The industry median Quick Ratio is 1.32. Performant Healthcare's value of 2.64 is 100% above this benchmark. Historically, Performant Healthcare's own Quick Ratio has ranged from 0.65 to 4.22 over the past decade. While the company's 10-year median is 2.09 vs. the industry median of 1.32, Performant Healthcare 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 Healthcare Providers & Services company?
The median Quick Ratio among Healthcare Providers & Services companies is 1.32, based on 680 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. Performant Healthcare's current Quick Ratio of 2.64 is 100% 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 Performant Healthcare and its competitors. For the Healthcare Providers & Services industry, the median Quick Ratio is 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Performant Healthcare's current Quick Ratio is 2.64, which is 26% above median its own 10-year median of 2.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Performant Healthcare stock overvalued right now?
Performant Healthcare (PHLT) has a current Quick Ratio of 2.64. The stock's GF Value™ is $3.24, compared to a current price of $7.75 — trading 139.2% above its estimated fair value. The current Quick Ratio is 2.64, which is 26% above median its 10-year median of 2.09 and 100% above the Healthcare Providers & Services industry median of 1.32. Performant Healthcare's overall GF Score™ is 9/100 with 4 warning signs to review. 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 Performant Healthcare (PHLT), the current Quick Ratio is 2.64 as of Jun. 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.
Is Performant Healthcare (PHLT) Overvalued in 2026?
Based on GuruFocus' analysis, Performant Healthcare stock appears to be overvalued.
The current stock price of $7.75 is trading 139.2% above its estimated GF Value™ of $3.24.
Key valuation signals for PHLT:
Quick Ratio: 2.64 (26% above median its 10-year median of 2.09)
GF Value™: $3.24 vs. price of $7.75 (139.2% above fair value)
Industry Position: 100% above the Healthcare Providers & Services median
No single metric tells the full story. See the PHLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Performant Healthcare Inc provides solutions to payers in the healthcare industry to identify, prevent, and recover waste and improper payments by leveraging technology, analytics, and proprietary data assets.
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