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. Heritage Global's quick ratio for the quarter that ended in Dec. 2023 was 1.44.
Heritage Global has a quick ratio of 1.44. It generally indicates good short-term financial strength.
The historical rank and industry rank for Heritage Global's Quick Ratio or its related term are showing as below:
HGBL'
s Quick Ratio Range Over the Past 10 Years
Min: 0.33 Med: 0.68 Max: 1.91
Current: 1.44
During the past 13 years, Heritage Global's highest Quick Ratio was 1.91. The lowest was 0.33. And the median was 0.68.
HGBL's Quick Ratio is ranked worse than 63.51% of 666
companies
in the Capital Markets industry
Industry Median: 1.935
vs HGBL: 1.44
Heritage Global Quick Ratio Historical Data
The historical data trend for Heritage Global'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 Heritage Global's Quick Ratio
For the Capital Markets subindustry, Heritage Global'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.
Heritage Global's Quick Ratio Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Heritage Global's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Heritage Global's Quick Ratio falls into.
Heritage Global 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.
Heritage Global'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.
Heritage Global (NAS:HGBL) 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.
Heritage Global Quick Ratio Related Terms
Thank you for viewing the detailed overview of Heritage Global's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Heritage Global (Heritage Global) Business Description
Heritage Global Inc values and monetizes industrial and financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. It aids in facilitating the economy by diverting useful industrial assets from landfills and operating a supply chain by overseeing the post-sale account activity of financial assets. The group operates in four segments namely Auction and Liquidation; Refurbishment and Resale; Brokerage and Specialty Lending. It generates maximum revenue from the Auction and Liquidation segment. The Auction and Liquidation segment, through HGP, operates as a global full-service auction, appraisal, and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment.
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