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Molecular Templates has a Cash Ratio of 1.26. 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 Molecular Templates's Cash Ratio or its related term are showing as below:
MTEMQ's Cash Ratio is not ranked *
in the Biotechnology industry.
Industry Median: 3 * Ranked among companies with meaningful Cash Ratio only.
Molecular Templates (OTCPK:MTEMQ) 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.
Molecular Templates Cash Ratio Related Terms
Molecular Templates Cash Ratio Historical Data
* Premium members only.
The historical data trend for Molecular Templates'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.
MTEMQ vs GRTSQ, ARTHQ, VRTX: Cash Ratio Comparison
For the Biotechnology subindustry, Molecular Templates'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.
Molecular Templates Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Molecular Templates's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Molecular Templates'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.
Molecular Templates (MTEMQ) has a Cash Ratio of 1.26 as of Jun. 2024. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Molecular Templates and its competitors.
Is Molecular Templates' Cash Ratio too high?
Molecular Templates' current Cash Ratio is 1.26. The Biotechnology industry median Cash Ratio is 3.00. Molecular Templates' value of 1.26 is 58% below this industry median. Overall, Molecular Templates has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Molecular Templates' Cash Ratio compare to GRTSQ and ARTHQ?
Molecular Templates' Cash Ratio of 1.26 can be compared against companies in the Biotechnology industry. The industry median Cash Ratio is 3.00. Molecular Templates' value of 1.26 is 58% below this benchmark. 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 3.00, based on 1,341 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. Molecular Templates's current Cash Ratio of 1.26 is 58% 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 Molecular Templates and its competitors. For the Biotechnology industry, the median Cash Ratio is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Molecular Templates's current Cash Ratio is 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Molecular Templates stock overvalued right now?
Molecular Templates (MTEMQ) has a current Cash Ratio of 1.26. The current Cash Ratio is 1.26 and 58% below the Biotechnology industry median of 3.00. Molecular Templates' overall GF Score™ is 12/100. 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 Molecular Templates (MTEMQ), the current Cash Ratio is 1.26 as of Jun. 2024. 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.
Molecular Templates Inc is a clinical-stage biopharmaceutical company focused on developing therapeutic agents that selectively target tumor cells for the treatment of individuals living with cancer. Its pipeline products are MT-6402, MT-8421 and MT-0169.
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