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. Swedish Orphan Biovitrum AB's quick ratio for the quarter that ended in Dec. 2023 was 0.46.
Swedish Orphan Biovitrum AB has a quick ratio of 0.46. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Swedish Orphan Biovitrum AB's Quick Ratio or its related term are showing as below:
LTS:0MTD'
s Quick Ratio Range Over the Past 10 Years
Min: 0.46 Med: 0.87 Max: 1.57
Current: 0.46
During the past 13 years, Swedish Orphan Biovitrum AB's highest Quick Ratio was 1.57. The lowest was 0.46. And the median was 0.87.
LTS:0MTD's Quick Ratio is ranked worse than 86.03% of 1074
companies
in the Drug Manufacturers industry
Industry Median: 1.33
vs LTS:0MTD: 0.46
Swedish Orphan Biovitrum AB Quick Ratio Historical Data
The historical data trend for Swedish Orphan Biovitrum AB'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 Swedish Orphan Biovitrum AB's Quick Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Swedish Orphan Biovitrum AB'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.
Swedish Orphan Biovitrum AB's Quick Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Swedish Orphan Biovitrum AB's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Swedish Orphan Biovitrum AB's Quick Ratio falls into.
Swedish Orphan Biovitrum AB 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.
Swedish Orphan Biovitrum AB'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.
Swedish Orphan Biovitrum AB (LTS:0MTD) 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.
Swedish Orphan Biovitrum AB Quick Ratio Related Terms
Thank you for viewing the detailed overview of Swedish Orphan Biovitrum AB's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Swedish Orphan Biovitrum AB (LTS:0MTD) Business Description
Swedish Orphan Biovitrum, or Sobi, focuses on rare diseases, primarily in hematology and immunology. Biovitrum started with experience in studying recombinant proteins such as hemophilia factors, and partnered with Syntonix (now part of Sanofi) on long-acting hemophilia factor replacement programs in 2006. Biovitrum acquired Orfadin and a partnered product business with the acquisition of Swedish Orphan. Sobi launched hemophilia products Alprolix and Eloctate in Europe in 2016. Sobi has since been building its immunology pipeline (rare disease drug Gamifant, U.S. rights to RSV antibodies Synagis and Beyfortus, gout drug SEL-212, complement drug Aspaveli) and hematology pipeline outside of hemophilia (thrombocytopenia drug Doptelet, blood cancer drug Zynlonta, myelofibrosis drug Vonjo).
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