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. Applied DNA Sciences's quick ratio for the quarter that ended in Dec. 2023 was 1.63.
Applied DNA Sciences has a quick ratio of 1.63. It generally indicates good short-term financial strength.
The historical rank and industry rank for Applied DNA Sciences's Quick Ratio or its related term are showing as below:
APDN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.61 Med: 2.83 Max: 8.42
Current: 1.63
During the past 13 years, Applied DNA Sciences's highest Quick Ratio was 8.42. The lowest was 0.61. And the median was 2.83.
APDN's Quick Ratio is ranked worse than 57.56% of 238
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.885
vs APDN: 1.63
Applied DNA Sciences Quick Ratio Historical Data
The historical data trend for Applied DNA Sciences'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 Applied DNA Sciences's Quick Ratio
For the Diagnostics & Research subindustry, Applied DNA Sciences'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.
Applied DNA Sciences's Quick Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Applied DNA Sciences's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Applied DNA Sciences's Quick Ratio falls into.
Applied DNA Sciences 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.
Applied DNA Sciences's Quick Ratio for the fiscal year that ended in Sep. 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.
Applied DNA Sciences (NAS:APDN) 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.
Applied DNA Sciences Quick Ratio Related Terms
Thank you for viewing the detailed overview of Applied DNA Sciences's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Applied DNA Sciences (Applied DNA Sciences) Business Description
Applied DNA Sciences Inc is a biotechnology company developing and commercializing technologies to produce and detect deoxyribonucleic acid (DNA) nd ribonucleic acid (RNA). The company operates in three business segments- Therapeutic DNA Production Services, MDx Testing Services, and DNA Tagging and Security Products and Services. It generates majority of its revenue from the MDx Testing Services which is involved in performing and developing clinical molecular diagnostic and genetic tests and clinical laboratory testing services. The company provides its products and services under the brand of Applied DNA Sciences, SigNature molecular tags, SigNature T molecular tags, fiberTyping, SigNify and others.
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