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. Lobe Sciences's quick ratio for the quarter that ended in Feb. 2024 was 0.05.
Lobe Sciences has a quick ratio of 0.05. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Lobe Sciences's Quick Ratio or its related term are showing as below:
XCNQ:LOBE'
s Quick Ratio Range Over the Past 10 Years
Min: 0.03 Med: 3.06 Max: 122
Current: 0.05
During the past 13 years, Lobe Sciences's highest Quick Ratio was 122.00. The lowest was 0.03. And the median was 3.06.
XCNQ:LOBE's Quick Ratio is ranked worse than 97.86% of 1545
companies
in the Biotechnology industry
Industry Median: 3.6
vs XCNQ:LOBE: 0.05
Lobe Sciences Quick Ratio Historical Data
The historical data trend for Lobe Sciences'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 Lobe Sciences's Quick Ratio
For the Biotechnology subindustry, Lobe Sciences'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.
Lobe Sciences's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Lobe Sciences's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lobe Sciences's Quick Ratio falls into.
Lobe Sciences 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.
Lobe Sciences's Quick Ratio for the fiscal year that ended in Aug. 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.
Lobe Sciences (XCNQ:LOBE) 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.
Lobe Sciences Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lobe Sciences's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lobe Sciences Ltd is a technology and services company that provides real estate, financial, management, IP, and branding support for the development of transformational medicine. It is working to develop effective psilocybin-based therapeutics for the treatment of mild traumatic brain injuries and post-traumatic stress disorder and devices for the efficient application of medications.
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