The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Nektar Therapeutics's quick ratio for the quarter that ended in Dec. 2023 was 6.14.
Nektar Therapeutics has a quick ratio of 6.14. It generally indicates good short-term financial strength.
The historical rank and industry rank for Nektar Therapeutics's Quick Ratio or its related term are showing as below:
NKTR'
s Quick Ratio Range Over the Past 10 Years
Min: 3.98 Med: 5.94 Max: 17.39
Current: 6.14
During the past 13 years, Nektar Therapeutics's highest Quick Ratio was 17.39. The lowest was 3.98. And the median was 5.94.
NKTR's Quick Ratio is ranked better than 68.19% of 1553
companies
in the Biotechnology industry
Industry Median: 3.56
vs NKTR: 6.14
Nektar Therapeutics Quick Ratio Historical Data
The historical data trend for Nektar Therapeutics's Quick 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 Biotechnology subindustry, Nektar Therapeutics's Quick Ratio, along with its competitors' market caps and Quick 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.
Nektar Therapeutics Quick Ratio Distribution
For the Biotechnology industry and Healthcare sector, Nektar Therapeutics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Nektar Therapeutics's Quick Ratio falls into.
Nektar Therapeutics Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Nektar Therapeutics's Quick 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.
Nektar Therapeutics (NAS:NKTR) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Nektar Therapeutics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Nektar Therapeutics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nektar Therapeutics (Nektar Therapeutics) Business Description
Nektar Therapeutics is a biopharmaceutical company. It has wholly-owned research and development pipeline of investigational medicines in oncology, immunology, and virology as well as a portfolio of approved partnered medicines. In oncology, the company is focused on activating the immune system's natural tumor-fighting mechanisms, and it will be studying several immuno-oncology drug candidates in the clinic for a variety of cancer indications. In immunology, it is focused on addressing imbalances in the immune system to restore the body's self-tolerance mechanisms and achieve immune homeostasis. In virology, the company believes selective immuno-modulators can be useful in addressing viral infections in people. The group derives revenue from the United States and the Rest of the World.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NKTR has been successfully added to your 