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. Canopy Growth's quick ratio for the quarter that ended in Jun. 2023 was 1.64.
Canopy Growth has a quick ratio of 1.64. It generally indicates good short-term financial strength.
The historical rank and industry rank for Canopy Growth's Quick Ratio or its related term are showing as below:
CGC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.51 Med: 6.1 Max: 232
Current: 1.64
During the past 13 years, Canopy Growth's highest Quick Ratio was 232.00. The lowest was 0.51. And the median was 6.10.
CGC's Quick Ratio is ranked better than 58.69% of 1111
companies
in the Drug Manufacturers industry
Industry Median: 1.31
vs CGC: 1.64
Canopy Growth Quick Ratio Historical Data
The historical data trend for Canopy Growth'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.
Canopy Growth Annual Data
Trend
Jul13
Dec14
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Mar23
Quick Ratio
11.49
5.17
8.69
7.14
1.15
Canopy Growth Quarterly Data
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Quick Ratio
3.43
2.45
1.41
1.15
1.64
Competitive Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Canopy Growth'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.
Canopy Growth Quick Ratio Distribution
For the Drug Manufacturers industry and Healthcare sector, Canopy Growth's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Canopy Growth's Quick Ratio falls in comparison to its industry or sector. The grey bar indicates the Quick Ratio's extreme value range as defined by GuruFocus.
Canopy Growth 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.
Canopy Growth's Quick Ratio for the fiscal year that ended in Mar. 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.
Canopy Growth (NAS:CGC) 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.
Canopy Growth Quick Ratio Related Terms
Thank you for viewing the detailed overview of Canopy Growth's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include sports drink BioSteel, skincare products under This Works, Martha Stewart CBD, and Storz & Bickel vaporizers. Canopy growth is attempting to merge its U.S. assets into a separately operated holding company, Canopy USA, which will not be consolidated into the Canadian company's financials.
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