GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » IPH Ltd (ASX:IPH) » Definitions » Quick Ratio

IPH (ASX:IPH) Quick Ratio : 2.77 (As of Jun. 2024)


View and export this data going back to 2014. Start your Free Trial

What is IPH Quick Ratio?

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. IPH's quick ratio for the quarter that ended in Jun. 2024 was 2.77.

IPH has a quick ratio of 2.77. It generally indicates good short-term financial strength.

The historical rank and industry rank for IPH's Quick Ratio or its related term are showing as below:

ASX:IPH' s Quick Ratio Range Over the Past 10 Years
Min: 1.19   Med: 2.75   Max: 3.86
Current: 2.77

During the past 10 years, IPH's highest Quick Ratio was 3.86. The lowest was 1.19. And the median was 2.75.

ASX:IPH's Quick Ratio is ranked better than
76.11% of 1080 companies
in the Business Services industry
Industry Median: 1.555 vs ASX:IPH: 2.77

IPH Quick Ratio Historical Data

The historical data trend for IPH'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.

* Premium members only.

IPH Quick Ratio Chart

IPH Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.01 2.72 2.81 3.19 2.77

IPH Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.81 1.61 3.19 3.68 2.77

Competitive Comparison of IPH's Quick Ratio

For the Specialty Business Services subindustry, IPH'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.


IPH's Quick Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IPH's Quick Ratio distribution charts can be found below:

* The bar in red indicates where IPH's Quick Ratio falls into.



IPH 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.

IPH's Quick Ratio for the fiscal year that ended in Jun. 2024 is calculated as

Quick Ratio (A: Jun. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(275.1-0)/99.2
=2.77

IPH's Quick Ratio for the quarter that ended in Jun. 2024 is calculated as

Quick Ratio (Q: Jun. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(275.1-0)/99.2
=2.77

* 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.


IPH  (ASX:IPH) 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.


IPH Quick Ratio Related Terms

Thank you for viewing the detailed overview of IPH's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


IPH Business Description

Traded in Other Exchanges
Address
201 Sussex Street, Level 24, Tower 2, Darling Park, Sydney, NSW, AUS, 2000
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base consists of multinationals, public sector research organizations, and local businesses across various industries like healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.

IPH Headlines

No Headlines