Global Blood Therapeutics has a Cash Ratio of 5.56. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Global Blood Therapeutics's Cash Ratio or its related term are showing as below:
GBT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.87 Med: 11.83 Max: 24.11
Current: 5.56
During the past 9 years, Global Blood Therapeutics's highest Cash Ratio was 24.11. The lowest was 0.87. And the median was 11.83.
GBT's Cash Ratio is not ranked
in the Biotechnology industry.
Industry Median: 3.025
vs GBT: 5.56
Global Blood Therapeutics Cash Ratio Historical Data
* 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 Global Blood Therapeutics's Cash Ratio
For the Biotechnology subindustry, Global Blood Therapeutics's Cash Ratio, along with its competitors' market caps and Cash 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.
Global Blood Therapeutics's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Global Blood Therapeutics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Global Blood Therapeutics's Cash Ratio falls into.
Global Blood Therapeutics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Global Blood Therapeutics's Cash Ratio for the fiscal year that ended in Dec. 2021 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.
Global Blood Therapeutics (NAS:GBT) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Global Blood Therapeutics Cash Ratio Related Terms
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Global Blood Therapeutics (Global Blood Therapeutics) Business Description
Global Blood Therapeutics Inc operates in the healthcare sector of the United States. It discovers and develops novel therapeutics to address blood-based disorders. GBT440, its lead drug candidate targets the underlying mechanism of red blood cell (RBC) sickling, which provides the potential to treat sickle cell disease. GBT440. an oral, once-daily therapy arrests abnormal hemoglobin polymerization, the underlying mechanism of RBC sickling. In addition, the company is engaged in other research and development activities targeted at hereditary angioedema and owns exclusively licensed rights to its portfolio of product candidates in the United States, Europe, and other major markets.
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