Inspiration Healthcare Group (LSE:IHC) Quick Ratio : 1.50 (As of Jul. 2023)

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What is Inspiration Healthcare Group 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. Inspiration Healthcare Group's quick ratio for the quarter that ended in Jul. 2023 was 1.50.

Inspiration Healthcare Group has a quick ratio of 1.50. It generally indicates good short-term financial strength.

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

LSE:IHC' s Quick Ratio Range Over the Past 10 Years
Min: 1.42 Med: 1.69 Max: 4.91
Current: 1.5

During the past 13 years, Inspiration Healthcare Group's highest Quick Ratio was 4.91. The lowest was 1.42. And the median was 1.69.

LSE:IHC's Quick Ratio is ranked worse than
62.12% of 866 companies
in the Medical Devices & Instruments industry
Industry Median: 2.06 vs LSE:IHC: 1.50

Inspiration Healthcare Group Quick Ratio Historical Data

The historical data trend for Inspiration Healthcare Group'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.

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Inspiration Healthcare Group Quick Ratio Chart

Inspiration Healthcare Group Annual Data

Trend

Dec14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Quick Ratio

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2.22

1.91

2.05

2.40

1.53

Inspiration Healthcare Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
Quick Ratio	Get a 7-Day Free Trial															2.66	2.40	1.55	1.53	1.50

Competitive Comparison of Inspiration Healthcare Group's Quick Ratio

For the Medical Devices subindustry, Inspiration Healthcare Group'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.

Inspiration Healthcare Group's Quick Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Inspiration Healthcare Group's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Inspiration Healthcare Group's Quick Ratio falls into.

Inspiration Healthcare Group 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.

Inspiration Healthcare Group's Quick Ratio for the fiscal year that ended in Jan. 2023 is calculated as

Quick Ratio (A: Jan. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(24.099	-	9.935)	/	9.244
	=	1.53

Inspiration Healthcare Group's Quick Ratio for the quarter that ended in Jul. 2023 is calculated as

Quick Ratio (Q: Jul. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(22.608	-	10.493)	/	8.068
	=	1.50

Inspiration Healthcare Group (LSE:IHC) 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.

Inspiration Healthcare Group Quick Ratio Related Terms

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Inspiration Healthcare Group (LSE:IHC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inspiration Healthcare Group PLC (LSE:IHC) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

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Address

Unit 7/8 Commerce Park, Commerce Way, Croydon, GBR, CR0 4YL

Website

https://www.inspirationhealthcaregroup.com

Inspiration Healthcare Group PLC supplies outcome-improving medical devices in the areas of neonatal intensive care and patient warming. It operates in the Critical Care Medical Devices segment which includes Critical Care, Operating Theatre, and Home Healthcare. The company derives the maximum of its revenue from the United Kingdom through the Critical Care market division.