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. Cepheid's current ratio for the quarter that ended in Sep. 2016 was 4.30.
Cepheid has a current ratio of 4.30. 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 Cepheid's Current Ratio or its related term are showing as below:
CPHD's Current Ratio is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 2.245 * Ranked among companies with meaningful Current Ratio only.
Cepheid Current Ratio Historical Data
The historical data trend for Cepheid'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.
For the Diagnostics & Research subindustry, Cepheid'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.
Cepheid's Current Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Cepheid's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cepheid's Current Ratio falls into.
Cepheid 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.
Cepheid's Current Ratio for the fiscal year that ended in Dec. 2015 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.
Cepheid (NAS:CPHD) 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.
Cepheid Current Ratio Related Terms
Thank you for viewing the detailed overview of Cepheid's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cepheid was incorporated in the State of California on March 4, 1996. The Company is a molecular diagnostics company that develops, manufactures and markets integrated systems for testing in the clinical market, as well as for application in its non-clinical markets. The Company's systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The Company's product portfolio consists of tests, reagents and systems for the clinical and non-clinical markets. The Company's two systems are the GeneXpert and SmartCycler. The GeneXpert system, offers services in the clinical market, integrates sample preparation in addition to DNA amplification and detection. The GeneXpert system is designed for user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals and doctors' offices. The SmartCycler system integrates DNA amplification and detection to allow rapid analysis of a sample. Company faces competition from a number of companies that offer products to its target markets. Company has patents covering technologies of its own and has licensed technologies from others. In addition to patents, it rely on a combination of trade secrets, copyright and trademark laws, nondisclosure agreements, licenses and other contractual provisions and technical measures to maintain and develop its competitive position with respect to intellectual property. In the Clinical market, its products are regulated as medical device products by the FDA and comparable agencies in other countries. For the Non-Clinical market, all of its products are being produced under ISO 13485 and Quality System Regulations.
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