The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. 4D Molecular Therapeutics's current ratio for the quarter that ended in Dec. 2023 was 15.65.
4D Molecular Therapeutics has a current ratio of 15.65. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for 4D Molecular Therapeutics's Current Ratio or its related term are showing as below:
FDMT'
s Current Ratio Range Over the Past 10 Years
Min: 4.05 Med: 14.02 Max: 16.88
Current: 15.65
During the past 7 years, 4D Molecular Therapeutics's highest Current Ratio was 16.88. The lowest was 4.05. And the median was 14.02.
FDMT's Current Ratio is ranked better than 89.65% of 1556
companies
in the Biotechnology industry
Industry Median: 3.71
vs FDMT: 15.65
4D Molecular Therapeutics Current 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 4D Molecular Therapeutics's Current Ratio
For the Biotechnology subindustry, 4D Molecular Therapeutics's Current Ratio, along with its competitors' market caps and Current 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.
4D Molecular Therapeutics's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, 4D Molecular Therapeutics's Current Ratio distribution charts can be found below:
* The bar in red indicates where 4D Molecular Therapeutics's Current Ratio falls into.
4D Molecular Therapeutics Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
4D Molecular Therapeutics's Current 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.
4D Molecular Therapeutics (NAS:FDMT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
4D Molecular Therapeutics Current Ratio Related Terms
Thank you for viewing the detailed overview of 4D Molecular Therapeutics's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
4D Molecular Therapeutics (4D Molecular Therapeutics) Business Description
4D Molecular Therapeutics Inc a clinical-stage gene therapy company engaged in the development of product candidates using targeted and evolved AAV vectors. It has built portfolio of gene therapy product candidates focused in three therapeutic areas: ophthalmology (intravitreal vector), cardiology (intravenous vector) and pulmonology (aerosol vector). It has three product candidates in clinical trials: 4D-125 for the treatment of X-linked retinitis pigmentosa in a Phase 1/2 clinical trial, 4D-110 for the treatment of choroideremia in a Phase 1 clinical trial, and 4D-310 for the treatment of Fabry disease in a Phase 1/2 clinical trial. Its two IND candidates are 4D-150 for the treatment of wet age-related macular degeneration, and 4D-710 for the treatment of cystic fibrosis lung disease.
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