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. Sight Sciences's quick ratio for the quarter that ended in Mar. 2024 was 12.42.
Sight Sciences has a quick ratio of 12.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sight Sciences's Quick Ratio or its related term are showing as below:
SGHT'
s Quick Ratio Range Over the Past 10 Years
Min: 2.31 Med: 12.37 Max: 27.62
Current: 12.42
During the past 6 years, Sight Sciences's highest Quick Ratio was 27.62. The lowest was 2.31. And the median was 12.37.
SGHT's Quick Ratio is ranked better than 95.16% of 867
companies
in the Medical Devices & Instruments industry
Industry Median: 2.02
vs SGHT: 12.42
Sight Sciences Quick Ratio Historical Data
The historical data trend for Sight Sciences'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.
Competitive Comparison of Sight Sciences's Quick Ratio
For the Medical Devices subindustry, Sight Sciences'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.
Sight Sciences's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Sight Sciences's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sight Sciences's Quick Ratio falls into.
Sight Sciences 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.
Sight Sciences'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.
Sight Sciences (NAS:SGHT) 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.
Sight Sciences Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sight Sciences's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sight Sciences (Sight Sciences) Business Description
Sight Sciences Inc is an ophthalmic medical device company focused on the development and commercialization of surgical and nonsurgical technologies for the treatment of prevalent eye diseases. Its Surgical Glaucoma segment's product portfolio features the OMNI Surgical System, a device that facilitates the performance of both canaloplasty and trabeculotomy with a single device and single corneal incision to reduce intraocular pressure in adult patients with primary open-angle glaucoma. The company's Dry Eye segment's product portfolio consists of the TearCare System for ophthalmologists and optometrists. It derives key revenue from the Surgical Glaucoma segment.
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