Definitive Healthcare (Definitive Healthcare) Quick Ratio : 2.30 (As of Mar. 2024)

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What is Definitive Healthcare 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. Definitive Healthcare's quick ratio for the quarter that ended in Mar. 2024 was 2.30.

Definitive Healthcare has a quick ratio of 2.30. It generally indicates good short-term financial strength.

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

DH' s Quick Ratio Range Over the Past 10 Years
Min: 0.52 Med: 2.7 Max: 3.61
Current: 2.3

During the past 5 years, Definitive Healthcare's highest Quick Ratio was 3.61. The lowest was 0.52. And the median was 2.70.

DH's Quick Ratio is ranked better than
72.78% of 676 companies
in the Healthcare Providers & Services industry
Industry Median: 1.21 vs DH: 2.30

Definitive Healthcare Quick Ratio Historical Data

The historical data trend for Definitive Healthcare'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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Definitive Healthcare Quick Ratio Chart

Definitive Healthcare Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Quick Ratio

0.52

0.72

3.61

2.94

2.31

Definitive Healthcare Quarterly Data
	Jul19	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Quick Ratio	Get a 7-Day Free Trial													2.96	2.84	2.55	2.31	2.30

Competitive Comparison of Definitive Healthcare's Quick Ratio

For the Health Information Services subindustry, Definitive Healthcare'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.

Definitive Healthcare's Quick Ratio Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Definitive Healthcare's Quick Ratio distribution charts can be found below:

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

Definitive Healthcare 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.

Definitive Healthcare's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(393.927	-	0)	/	170.682
	=	2.31

Definitive Healthcare's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(378.717	-	0)	/	164.98
	=	2.30

Definitive Healthcare (NAS:DH) 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.

Definitive Healthcare Quick Ratio Related Terms

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Definitive Healthcare (Definitive Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Definitive Healthcare Corp (NAS:DH) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

492 Old Connecticut Path, Suite 401, Framingham, MA, USA, 01701

Website

https://www.definitivehc.com

Definitive Healthcare Corp is a leading provider of healthcare commercial intelligence. The company's solutions provide accurate and comprehensive information on healthcare providers and their activities to help customers optimize everything from product development to go-to-market planning and sales and marketing execution. Geographically, it derives a majority of its revenue from the United States.

Executives

Carrie Lazorchak	officer: Chief Revenue Officer	C/O DEFINITIVE HEALTHCARE CORP., 492 OLD CONNECTICUT PATH, SUITE 401, FRAMINGHAM MA 01701
Scott G Stephenson	director	C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310-1686
Sea Vii Management, Llc	director, 10 percent owner	ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent International Gp, Llc	director, 10 percent owner	800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Spectrum Vii Investment Managers' Fund, L.p.	director, 10 percent owner	ONE INTERNATIONAL PLACE, 35TH FLOOR, BOSTON MA 02110
Jason Ronald Krantz	director, 10 percent owner, officer: Chief Executive Officer	C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Jonathan Maack	officer: President	C/O DEFINITIVE HEALTHCARE CORP., 550 COCHITUATE RD, FRAMINGHAM MA 01701
Sastry Chilukuri	director	5 BUDDY LANE, MORRISTOWN NJ 07960
David Randall Winn	director	7900 GLADES ROAD, SUITE 540, BOCA RATON FL 33434
Jeffrey Charles Haywood	director, 10 percent owner	C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Richard Douglas Booth	officer: Chief Financial Officer	200 CLARENDON STREET, T-9, BOSTON MA 02116
Kathleen A Winters	director	101 COLUMBIA ROAD, MORRISTOWN NJ 07960
Spectrum Vii Co-investment Fund, L.p.	director, 10 percent owner	ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent Global Technology-c Limited Partnership	director, 10 percent owner	PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Advent Global Technology-d Limited Partnership	director, 10 percent owner	PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069