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. Agilent Technologies's quick ratio for the quarter that ended in Jan. 2024 was 2.04.
Agilent Technologies has a quick ratio of 2.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for Agilent Technologies's Quick Ratio or its related term are showing as below:
FRA:AG8'
s Quick Ratio Range Over the Past 10 Years
Min: 1.21 Med: 2.43 Max: 3.44
Current: 2.04
During the past 13 years, Agilent Technologies's highest Quick Ratio was 3.44. The lowest was 1.21. And the median was 2.43.
FRA:AG8's Quick Ratio is ranked better than 52.52% of 238
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.885
vs FRA:AG8: 2.04
Agilent Technologies Quick Ratio Historical Data
The historical data trend for Agilent Technologies'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.
For the Diagnostics & Research subindustry, Agilent Technologies'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.
Agilent Technologies Quick Ratio Distribution
For the Medical Diagnostics & Research industry and Healthcare sector, Agilent Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Agilent Technologies's Quick Ratio falls into.
Agilent Technologies 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.
Agilent Technologies's Quick Ratio for the fiscal year that ended in Oct. 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.
Agilent Technologies (FRA:AG8) 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.
Agilent Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Agilent Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Agilent Technologies (FRA:AG8) Business Description
Originally spun out of Hewlett-Packard in 1999, Agilent has evolved into a leading life sciences and diagnostics firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab (consisting of consumables and services related to life science and applied tools), and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, but it also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. The company is geographically diverse, with operations in the U.S. and China representing the largest country concentrations.
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