Morgan Group Holding Co has a quick ratio of 2.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Morgan Group Holding Co's Quick Ratio or its related term are showing as below:
MGHL's Quick Ratio is not ranked *
in the Capital Markets industry.
Industry Median: 2.1 * Ranked among companies with meaningful Quick Ratio only.
Morgan Group Holding Co (OTCPK:MGHL) 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.
Morgan Group Holding Co Quick Ratio Related Terms
Morgan Group Holding Co Quick Ratio Historical Data
* 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 Capital Markets subindustry, Morgan Group Holding Co'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.
Morgan Group Holding Co Quick Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Morgan Group Holding Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Morgan Group Holding Co's Quick Ratio falls into.
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.
Morgan Group Holding Co's Quick Ratio for the fiscal year that ended in Dec. 2022 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.
Morgan Group Holding Co (MGHL) has a Quick Ratio of 2.42 as of Sep. 2023. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Morgan Group Holding Co and its competitors.
Is Morgan Group Holding Co's Quick Ratio too high?
Morgan Group Holding Co's current Quick Ratio is 2.42. The Capital Markets industry median Quick Ratio is 2.10. Morgan Group Holding Co's value of 2.42 is 15.2% above this industry median. Overall, Morgan Group Holding Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Morgan Group Holding Co's Quick Ratio compare to CCTL and VTXB?
Morgan Group Holding Co's Quick Ratio of 2.42 can be compared against companies in the Capital Markets industry. The industry median Quick Ratio is 2.10. Morgan Group Holding Co's value of 2.42 is 15.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Capital Markets company?
The median Quick Ratio among Capital Markets companies is 2.10, based on 687 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Group Holding Co's current Quick Ratio of 2.42 is 15.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Morgan Group Holding Co and its competitors. For the Capital Markets industry, the median Quick Ratio is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Group Holding Co's current Quick Ratio is 2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Group Holding Co stock overvalued right now?
Morgan Group Holding Co (MGHL) has a current Quick Ratio of 2.42. The current Quick Ratio is 2.42 and 15.2% above the Capital Markets industry median of 2.10. Morgan Group Holding Co's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Morgan Group Holding Co (MGHL), the current Quick Ratio is 2.42 as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Morgan Group Holding Co through its wholly own subsidiary operates in institutional research and securities brokerage business. It provides underwriting and institutional research services. The firm derives revenue from institutional research services, underwriting fees and selling concessions. The company operates in one business segment, which generates brokerage commission revenues from securities transactions executed on an agency basis on behalf of institutional clients and mutual funds, private wealth management clients, and retail customers of affiliated companies.
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