Eton Pharmaceuticals has a Cash Ratio of 1.03. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Eton Pharmaceuticals's Cash Ratio or its related term are showing as below:
ETON'
s Cash Ratio Range Over the Past 10 Years
Min: 0.97 Med: 4.37 Max: 13.21
Current: 1.03
During the past 7 years, Eton Pharmaceuticals's highest Cash Ratio was 13.21. The lowest was 0.97. And the median was 4.37.
ETON's Cash Ratio is ranked better than 64.28% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 0.58
vs ETON: 1.03
Eton Pharmaceuticals Cash Ratio Historical Data
The historical data trend for Eton Pharmaceuticals's Cash 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 Eton Pharmaceuticals's Cash Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Eton Pharmaceuticals's Cash Ratio, along with its competitors' market caps and Cash 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.
Eton Pharmaceuticals's Cash Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eton Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Eton Pharmaceuticals's Cash Ratio falls into.
Eton Pharmaceuticals Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Eton Pharmaceuticals's Cash 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.
Eton Pharmaceuticals (NAS:ETON) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Eton Pharmaceuticals Cash Ratio Related Terms
Thank you for viewing the detailed overview of Eton Pharmaceuticals's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Eton Pharmaceuticals Inc is a United States based specialty pharmaceutical company. The company is engaged in developing and commercializing pharmaceutical products to fulfill an unmet patient need. It has four commercial rare disease products, Alkindi Sprinkle for the treatment of adrenocortical insufficiency; Carglumic Acid for the treatment of hyperammonemia, Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of hereditary tyrosinemia type 1 (HT-1). The Company has three additional product candidates in late-stage development: ET-400, ET-600, and ZENEO hydrocortisone autoinjector.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ETON has been successfully added to your 