Name: Quick Ratio

Definition: The quick ratio is like an emergency response measure: can the company pay off short-term debts without selling any inventory? It only counts cash, short-term investments, and receivables — assets that can quickly be turned into cash. A healthy quick ratio shows strong liquidity. A very low quick ratio means the company depends on selling inventory to meet short-term obligations — which can be risky if sales unexpectedly slow down.

Interpretation:
• In '2023', VANI's quick ratio was 3.61, providing a stringent test of short-term liquidity. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2023' stood at 2.84.
• In '2024', VANI's quick ratio was 3.11, providing a stringent test of short-term liquidity. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2024' stood at 3.01. Industry average increased by 0.17 compared to previous year.
Overall, VANI's quick ratio has consistently declined during the past 2 years.

Formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Good Range: Normally between 0.8 and 1.5.