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Madrigal PharmaceuticalsMDGL -5.23%31 Cash Ratio is 2.24 as of Jun. 2026, which is 64% below its 10-year median of 6.20. GuruFocus rates MDGL with a GF Score™ of 31/100. The stock has 3 warning signs investors should review. Among 1,384 Biotechnology companies, Madrigal Pharmaceuticals ranks worse than 56.79% on this metric.
Madrigal Pharmaceuticals has a Cash Ratio of 2.24. 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 Madrigal Pharmaceuticals's Cash Ratio or its related term are showing as below:
MDGL'
s Cash Ratio Range Over the Past 10 Years
Min: 1.55 Med: 6.2 Max: 90.2
Current: 2.24
During the past 13 years, Madrigal Pharmaceuticals's highest Cash Ratio was 90.20. The lowest was 1.55. And the median was 6.20.
MDGL's Cash Ratio is ranked worse than 56.79% of 1384
companies
in the Biotechnology industry
Industry Median: 2.93
vs MDGL: 2.24
Madrigal Pharmaceuticals (NAS:MDGL) 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.
Madrigal Pharmaceuticals Cash Ratio Related Terms
Madrigal Pharmaceuticals Cash 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.
For the Biotechnology subindustry, Madrigal 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.
Madrigal Pharmaceuticals Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Madrigal Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Madrigal Pharmaceuticals's Cash Ratio falls into.
* 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.
Madrigal Pharmaceuticals (MDGL) has a Cash Ratio of 2.24 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Madrigal Pharmaceuticals and its competitors. This is 64% below median its historical median of 6.20. Over the past decade, Madrigal Pharmaceuticals' Cash Ratio has ranged from 1.55 to 90.20. According to the industry distribution chart, Madrigal Pharmaceuticals ranks #786 out of 1384 companies in the Biotechnology industry, placing it in the top 56.8%.
Is Madrigal Pharmaceuticals' Cash Ratio too high?
Madrigal Pharmaceuticals' current Cash Ratio of 2.24 is 64% below median its 10-year median of 6.20. Over the past 10 years, this metric has ranged from a low of 1.55 to a high of 90.20. The Biotechnology industry median Cash Ratio is 2.93. Madrigal Pharmaceuticals' value of 2.24 is 23.5% below this industry median. Based on the distribution chart, Madrigal Pharmaceuticals ranks #786 out of 1384 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Madrigal Pharmaceuticals has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Madrigal Pharmaceuticals' Cash Ratio compare to AXSM and ARWR?
According to the Biotechnology industry distribution chart, Madrigal Pharmaceuticals ranks #786 out of 1384 companies for Cash Ratio. This places Madrigal Pharmaceuticals in the lower half of its industry. The industry median Cash Ratio is 2.93. Madrigal Pharmaceuticals' value of 2.24 is 23.5% below this benchmark. Historically, Madrigal Pharmaceuticals' own Cash Ratio has ranged from 1.55 to 90.20 over the past decade. While the company's 10-year median is 6.20 vs. the industry median of 2.93, Madrigal Pharmaceuticals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Biotechnology company?
The median Cash Ratio among Biotechnology companies is 2.93, based on 1,384 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Madrigal Pharmaceuticals's current Cash Ratio of 2.24 is 23.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Madrigal Pharmaceuticals and its competitors. For the Biotechnology industry, the median Cash Ratio is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Madrigal Pharmaceuticals's current Cash Ratio is 2.24, which is 64% below median its own 10-year median of 6.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Madrigal Pharmaceuticals stock overvalued right now?
Madrigal Pharmaceuticals (MDGL) has a current Cash Ratio of 2.24. The current Cash Ratio is 2.24, which is 64% below median its 10-year median of 6.20 and 23.5% below the Biotechnology industry median of 2.93. Madrigal Pharmaceuticals' overall GF Score™ is 31/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Madrigal Pharmaceuticals (MDGL), the current Cash Ratio is 2.24 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Madrigal Pharmaceuticals Inc is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease with high unmet medical need that can lead to cirrhosis, liver failure, liver cancer, need for liver transplantation and premature mortality. Its medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed thyroid hormone receptor beta agonist designed to target key underlying causes of MASH.
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