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. SWK Holdings's quick ratio for the quarter that ended in Dec. 2023 was 3.01.
SWK Holdings has a quick ratio of 3.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for SWK Holdings's Quick Ratio or its related term are showing as below:
SWKH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.43 Med: 9.03 Max: 234.02
Current: 3.01
During the past 13 years, SWK Holdings's highest Quick Ratio was 234.02. The lowest was 0.43. And the median was 9.03.
SWKH's Quick Ratio is ranked better than 51.68% of 685
companies
in the Asset Management industry
Industry Median: 2.8
vs SWKH: 3.01
SWK Holdings Quick Ratio Historical Data
The historical data trend for SWK Holdings'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 SWK Holdings's Quick Ratio
For the Asset Management subindustry, SWK Holdings'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.
SWK Holdings's Quick Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, SWK Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SWK Holdings's Quick Ratio falls into.
SWK Holdings 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.
SWK Holdings'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.
SWK Holdings (NAS:SWKH) 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.
SWK Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of SWK Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
SWK Holdings Corp is a healthcare capital provider. The company offers financing solutions to various life science companies, institutions, and inventors. It involves monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. Through its wholly-owned subsidiary, it also provides non-discretionary investment advisory services to institutional clients. The company's operating segments are Finance Receivables and Pharmaceutical Development Services. It generates maximum revenue from the Finance Receivables segment.
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