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. NeurogesX's current ratio for the quarter that ended in Dec. 2011 was 2.00.
NeurogesX has a current ratio of 2.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for NeurogesX's Current Ratio or its related term are showing as below:
NGSX's Current Ratio is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.87 * Ranked among companies with meaningful Current Ratio only.
NeurogesX Current Ratio Historical Data
The historical data trend for NeurogesX's Current 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 NeurogesX's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, NeurogesX'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.
NeurogesX's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, NeurogesX's Current Ratio distribution charts can be found below:
* The bar in red indicates where NeurogesX's Current Ratio falls into.
NeurogesX 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.
NeurogesX's Current Ratio for the fiscal year that ended in Dec. 2011 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.
NeurogesX (OTCPK:NGSX) 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.
NeurogesX Current Ratio Related Terms
Thank you for viewing the detailed overview of NeurogesX's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NeurogesX, Inc. was incorporated in California as Advanced Analgesics, Inc. on May 28, 1998 and changed its name to NeurogesX, Inc. in September 2000. In February 2007, it reincorporated into Delaware. It is a biopharmaceutical company focused on developing and commercializing novel pain management therapies. It is assembling a portfolio of pain management product candidates based on known chemical entities to develop innovative new therapies that might offer substantial advantages over currently available treatment options. The Company's initial focus is on the management of chronic peripheral neuropathic pain conditions. The Company's first commercial product, Qutenza, the first prescription strength capsaicin product is a dermal delivery system designed to treat certain neuropathic pain conditions and was approved by the U.S, Food and Drug Administration, or FDA in November 2009 for the management of neuropathic pain associated with postherpetic neuralgia, or PHN. It is currently preparing to commercialize Qutenza in the United States with its own sales force and that Qutenza would be commercially available in the United States in the first half of 2010. Qutenza is a non-narcotic analgesic formulated in a localized treatment patch containing an 8% concentration of synthetic capsaicin. Capsaicin is released from the patch and, with the aid of penetration enhancers, penetrates into the skin during application without significant absorption of capsaicin into the bloodstream. The users of Qutenza are unlikely to experience the common central nervous system side effects of systemically administered drugs used to treat neuropathic pain such as anti-convulsants, anti-depressants and opioids and the potential for abuse and addiction associated with some of these drugs. It is currently evaluating the nature, scope and timing of continued development of Qutenza to support the potential for label expansion in the United States. Areas of potential focus for label expansion include HIV-distal sensory neuropathy, or HIV-DSP, also known as HIV-associated neuropathy, or HIV-AN, painful diabetic neuropathy, or PDN, and potentially other neuropathic pain indications. It expects that Qutenza would compete against, and may be used in combination with, well-established products currently used both on and off-label in its target indications. The most directly competitive currently marketed products in the United States are Lidoderm, an FDA-approved 5% lidocaine topical patch for the treatment of PHN marketed by Endo Pharmaceuticals, and Lyrica, an oral anti-convulsant, marketed by Pfizer for use in the treatment of PHN. Regulation by governmental authorities in the United States and other countries is a significant factor in the development, manufacture and marketing of pharmaceuticals.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NGSX has been successfully added to your 