The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. IVD Medical Holding's current ratio for the quarter that ended in Dec. 2023 was 2.49.
IVD Medical Holding has a current ratio of 2.49. It generally indicates good short-term financial strength.
The historical rank and industry rank for IVD Medical Holding's Current Ratio or its related term are showing as below:
HKSE:01931'
s Current Ratio Range Over the Past 10 Years
Min: 2.19 Med: 2.84 Max: 5.25
Current: 2.49
During the past 8 years, IVD Medical Holding's highest Current Ratio was 5.25. The lowest was 2.19. And the median was 2.84.
HKSE:01931's Current Ratio is ranked better than 77.55% of 98
companies
in the Medical Distribution industry
Industry Median: 1.405
vs HKSE:01931: 2.49
IVD Medical Holding Current Ratio Historical Data
The historical data trend for IVD Medical Holding's Current 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 IVD Medical Holding's Current Ratio
For the Medical Distribution subindustry, IVD Medical Holding's Current Ratio, along with its competitors' market caps and Current 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.
IVD Medical Holding's Current Ratio Distribution in the Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, IVD Medical Holding's Current Ratio distribution charts can be found below:
* The bar in red indicates where IVD Medical Holding's Current Ratio falls into.
IVD Medical Holding Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
IVD Medical Holding's Current Ratio for the fiscal year that ended in Dec. 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.
IVD Medical Holding (HKSE:01931) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
IVD Medical Holding Current Ratio Related Terms
Thank you for viewing the detailed overview of IVD Medical Holding's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
IVD Medical Holding (HKSE:01931) Business Description
IVD Medical Holding Ltd is principally engaged in the sale and manufacture of medical equipment and consumables and the provision of consultancy and maintenance services related to medical equipment. It has three segments. The distribution business, which is the key revenue driver, involves the trading of IVD analysers, reagents, and other consumables to customers such as distributors, hospitals and healthcare institutions, and logistics providers. The After-sales Services provided by Vastec include maintenance and repair services, installation services and end-customer training. Its Self-branded Products Business, distributes its self-developed IVD products under its own brand which includes IVD analysers and reagents under the IVD testing category of Point-of-care testing.
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