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. Nephros's quick ratio for the quarter that ended in Dec. 2023 was 2.81.
Nephros has a quick ratio of 2.81. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nephros's Quick Ratio or its related term are showing as below:
NEPH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.88 Med: 2.37 Max: 7.43
Current: 2.81
During the past 13 years, Nephros's highest Quick Ratio was 7.43. The lowest was 0.88. And the median was 2.37.
NEPH's Quick Ratio is ranked better than 61.59% of 867
companies
in the Medical Devices & Instruments industry
Industry Median: 2.06
vs NEPH: 2.81
Nephros Quick Ratio Historical Data
The historical data trend for Nephros'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 Medical Instruments & Supplies subindustry, Nephros'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.
Nephros's Quick Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Nephros's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nephros's Quick Ratio falls into.
Nephros 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.
Nephros'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.
Nephros (NAS:NEPH) 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.
Nephros Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nephros's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nephros Inc is a commercial-stage company that develops and sells high performance water solutions to the medical and commercial markets. In medical markets, it sell water filtration products and waterborne pathogen detection products. In commercial markets, the company manufacture and sell water filters that improve the taste and odor of water and reduce biofilm, bacteria, and scale build-up in downstream equipment. The company's subsidiary is engaged in the development of its second-generation hemodiafiltration system and other products focused on improving therapies for patients with renal disease. The operating segments of the group are Water Filtration, Pathogen Detection and Renal Products of which key revenue is derived from Water Filtration segment.
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