LH Quick Ratio Analysis

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets, excluding inventory.

LH’s current quick ratio of 1.24x means it has $1.24 in cash and equivalents for every $1 of current liabilities, indicating a comfortable liquidity position. This compares favorably to the sector median of 0.71x, placing LH in the 78th percentile among its peers. The year-over-year change is reported as N/A, the quarter-over-quarter change is also N/A, and no trend data is available for the last eight quarters, so no directional shift can be assessed. The absence of trend information means the high level alone suggests low immediate liquidity risk, but investors lack evidence of improvement or deterioration. This strong liquidity metric supports a neutral overall verdict, as it is a positive factor but does not alone outweigh other considerations that led to the NEUTRAL rating.

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