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. Compass Pathways's quick ratio for the quarter that ended in Mar. 2024 was 15.23.
Compass Pathways has a quick ratio of 15.23. It generally indicates good short-term financial strength.
The historical rank and industry rank for Compass Pathways's Quick Ratio or its related term are showing as below:
STU:5Y6'
s Quick Ratio Range Over the Past 10 Years
Min: 1.35 Med: 16.38 Max: 42.82
Current: 15.23
During the past 6 years, Compass Pathways's highest Quick Ratio was 42.82. The lowest was 1.35. And the median was 16.38.
STU:5Y6's Quick Ratio is ranked better than 98.39% of 683
companies
in the Healthcare Providers & Services industry
Industry Median: 1.2
vs STU:5Y6: 15.23
Compass Pathways Quick Ratio Historical Data
The historical data trend for Compass Pathways'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 Compass Pathways's Quick Ratio
For the Medical Care Facilities subindustry, Compass Pathways'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.
Compass Pathways's Quick Ratio Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Compass Pathways's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Compass Pathways's Quick Ratio falls into.
Compass Pathways 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.
Compass Pathways'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.
Compass Pathways (STU:5Y6) 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.
Compass Pathways Quick Ratio Related Terms
Thank you for viewing the detailed overview of Compass Pathways's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Compass Pathways PLC is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The company is motivated by the need to find better ways to help and empower people suffering with mental health challenges who are not helped by existing therapies and are pioneering the development of a new model of psilocybin therapy, in which psilocybin is administered in conjunction with psychological support. Its focus is on treatment-resistant depression, or TRD, a subset of depressive disorder, or MDD, comprising patients who are inadequately served by the treatment paradigm. It has developed a proprietary, high-purity polymorphic crystalline formulation of psilocybin, COMP360.
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