Elite Pharmaceuticals has a quick ratio of 1.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Elite Pharmaceuticals's Quick Ratio or its related term are showing as below:
ELTP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.52 Med: 1.65 Max: 3.84
Current: 1.19
During the past 13 years, Elite Pharmaceuticals's highest Quick Ratio was 3.84. The lowest was 0.52. And the median was 1.65.
ELTP's Quick Ratio is ranked worse than 55.03% of 1074
companies
in the Drug Manufacturers industry
Industry Median: 1.335
vs ELTP: 1.19
Elite Pharmaceuticals Quick Ratio Historical Data
The historical data trend for Elite Pharmaceuticals'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 Elite Pharmaceuticals's Quick Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Elite Pharmaceuticals'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.
Elite Pharmaceuticals's Quick Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elite Pharmaceuticals's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Elite Pharmaceuticals's Quick Ratio falls into.
Elite Pharmaceuticals 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.
Elite Pharmaceuticals'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.
Elite Pharmaceuticals (OTCPK:ELTP) 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.
Elite Pharmaceuticals Quick Ratio Related Terms
Thank you for viewing the detailed overview of Elite Pharmaceuticals's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Elite Pharmaceuticals (Elite Pharmaceuticals) Business Description
Elite Pharmaceuticals Inc is a pharmaceutical company. It is principally engaged in the development and manufacture of oral, controlled-release products, using proprietary know-how and technology. The company's operating segment includes Abbreviated New Drug Applications (ANDA) and New Drug Applications (NDA). It generates maximum revenue from the ANDA segment. The company focuses on developing pain management products; manufacturing a line of generic pharmaceutical products with approved Abbreviated New Drug Applications; developing additional generic pharmaceutical products; development of other products in its pipeline including the products with its partners; and commercialization of new products.
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