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. Nortem Biogroup's quick ratio for the quarter that ended in Dec. 2022 was 0.42.
Nortem Biogroup has a quick ratio of 0.42. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Nortem Biogroup's Quick Ratio or its related term are showing as below:
XPAR:MLBIO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.42 Med: 0.52 Max: 0.61
Current: 0.42
During the past 2 years, Nortem Biogroup's highest Quick Ratio was 0.61. The lowest was 0.42. And the median was 0.52.
XPAR:MLBIO's Quick Ratio is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 1.035
vs XPAR:MLBIO: 0.42
Nortem Biogroup Quick Ratio Historical Data
The historical data trend for Nortem Biogroup'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.
* Premium members only.
Nortem Biogroup Quick Ratio Chart
Nortem Biogroup Annual Data
Trend
Dec21
Dec22
Quick Ratio
0.61
0.42
Nortem Biogroup Semi-Annual Data
Dec21
Dec22
Quick Ratio
0.61
0.42
Competitive Comparison of Nortem Biogroup's Quick Ratio
For the Packaged Foods subindustry, Nortem Biogroup'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.
Nortem Biogroup's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nortem Biogroup's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nortem Biogroup's Quick Ratio falls into.
Nortem Biogroup 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.
Nortem Biogroup's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Nortem Biogroup (XPAR:MLBIO) 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.
Nortem Biogroup Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nortem Biogroup's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nortem Chem SA is engaged in the research, development, innovation and industrialization in the field of biochemistry and biotechnology, as well as the production and sale of products based on biochemical and/or biotechnological processes. It emerged as a biotechnological company in the field of the food and chemical industry, with maximum environmental awareness, concentrating its research and product development efforts on the development of environmentally friendly alternatives from renewable sources and obtaining its own microorganisms (Aspergillus Niger and Yarrowia lipolytica) with outstanding capabilities from adaptation and selection processes, avoiding the use of genetic modification technologies.
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