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. Meridian Bioscience's current ratio for the quarter that ended in Sep. 2022 was 3.63.
Meridian Bioscience has a current ratio of 3.63. 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 Meridian Bioscience's Current Ratio or its related term are showing as below:
VIVO's Current Ratio is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 2.245 * Ranked among companies with meaningful Current Ratio only.
Meridian Bioscience Current Ratio Historical Data
The historical data trend for Meridian Bioscience'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 Meridian Bioscience's Current Ratio
For the Diagnostics & Research subindustry, Meridian Bioscience'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.
Meridian Bioscience's Current Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Meridian Bioscience's Current Ratio distribution charts can be found below:
* The bar in red indicates where Meridian Bioscience's Current Ratio falls into.
Meridian Bioscience 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.
Meridian Bioscience's Current Ratio for the fiscal year that ended in Sep. 2022 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.
Meridian Bioscience (NAS:VIVO) 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.
Meridian Bioscience Current Ratio Related Terms
Thank you for viewing the detailed overview of Meridian Bioscience's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Meridian Bioscience (Meridian Bioscience) Business Description
Meridian Bioscience Inc is an integrated life science company. It develops and distributes diagnostic tests and reagents, as well as biologic substances used by pharmaceutical and biotechnology companies. Its Diagnostics segment manufactures tests primarily for gastrointestinal, viral, respiratory, & parasitic infectious diseases. Its testing platforms include isothermal DNA amplification, rapid immunoassays, and enzyme-linked immunoassays. The Life sciences segment sells b-antigens, antibodies, and reagents in bulk to other diagnostic manufacturers, the agriculture industry, and researchers. It also manufactures proteins that biopharmaceutical companies use in new drugs and vaccines. The entity has a business presence in the US and other countries.
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