Olaplex Holdings has a quick ratio of 9.12. It generally indicates good short-term financial strength.
The historical rank and industry rank for Olaplex Holdings's Quick Ratio or its related term are showing as below:
OLPX'
s Quick Ratio Range Over the Past 10 Years
Min: 0.59 Med: 3.6 Max: 9.21
Current: 9.12
During the past 5 years, Olaplex Holdings's highest Quick Ratio was 9.21. The lowest was 0.59. And the median was 3.60.
OLPX's Quick Ratio is ranked better than 97.85% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.875
vs OLPX: 9.12
Olaplex Holdings Quick Ratio Historical Data
The historical data trend for Olaplex Holdings'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 Olaplex Holdings's Quick Ratio
For the Specialty Retail subindustry, Olaplex Holdings'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.
Olaplex Holdings's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Olaplex Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Olaplex Holdings's Quick Ratio falls into.
Olaplex Holdings 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.
Olaplex Holdings's Quick 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.
Olaplex Holdings (NAS:OLPX) 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.
Olaplex Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Olaplex Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Olaplex Holdings (Olaplex Holdings) Business Description
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.
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