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. Zentalis Pharmaceuticals's current ratio for the quarter that ended in Mar. 2024 was 9.19.
Zentalis Pharmaceuticals has a current ratio of 9.19. 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 Zentalis Pharmaceuticals's Current Ratio or its related term are showing as below:
ZNTL'
s Current Ratio Range Over the Past 10 Years
Min: 3.9 Med: 8.03 Max: 15.59
Current: 9.19
During the past 6 years, Zentalis Pharmaceuticals's highest Current Ratio was 15.59. The lowest was 3.90. And the median was 8.03.
ZNTL's Current Ratio is ranked better than 78.92% of 1556
companies
in the Biotechnology industry
Industry Median: 3.71
vs ZNTL: 9.19
Zentalis Pharmaceuticals 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 Zentalis Pharmaceuticals's Current Ratio
For the Biotechnology subindustry, Zentalis Pharmaceuticals'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.
Zentalis Pharmaceuticals's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zentalis Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Zentalis Pharmaceuticals's Current Ratio falls into.
Zentalis Pharmaceuticals 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.
Zentalis Pharmaceuticals'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.
Zentalis Pharmaceuticals (NAS:ZNTL) 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.
Zentalis Pharmaceuticals Current Ratio Related Terms
Thank you for viewing the detailed overview of Zentalis Pharmaceuticals's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Zentalis Pharmaceuticals (Zentalis Pharmaceuticals) Business Description
Zentalis Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. It uses a drug discovery engine, which it refers to as Integrated Discovery Engine, to identify targets and develop small molecule new chemical entities, or NCEs, with properties that it believes could result in potentially differentiated product profiles. It has two lead product candidates under pipeline: ZN-c5, for the treatment of advanced estrogen receptor-positive, human epidermal growth factor receptor 2-negative, or ER+/HER2-, advanced or metastatic breast cancer; and ZN-c3, for the treatment of advanced solid tumors as monotherapy and ovarian cancer.
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