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Purple BiotechPPBT +0.33%21 Cash Ratio is 3.42 as of Jun. 2026, which is 32% above its 10-year median of 2.59. GuruFocus rates PPBT with a GF Score™ of 21/100. The stock has 2 warning signs investors should review. Among 1,381 Biotechnology companies, Purple Biotech ranks better than 53.37% on this metric.
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.
Purple Biotech Cash Ratio Related Terms
Purple Biotech Cash Ratio Historical Data
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The historical data trend for Purple Biotech'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.
For the Biotechnology subindustry, Purple Biotech'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.
Purple Biotech Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Purple Biotech's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Purple Biotech'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.
Purple Biotech (PPBT) has a Cash Ratio of 3.42 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Purple Biotech and its competitors. This is 32% above median its historical median of 2.59. Over the past decade, Purple Biotech's Cash Ratio has ranged from 1.14 to 18.66. According to the industry distribution chart, Purple Biotech ranks #644 out of 1381 companies in the Biotechnology industry, placing it in the top 46.6%.
Is Purple Biotech's Cash Ratio too high?
Purple Biotech's current Cash Ratio of 3.42 is 32% above median its 10-year median of 2.59. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 18.66. The Biotechnology industry median Cash Ratio is 2.96. Purple Biotech's value of 3.42 is 15.5% above this industry median. Based on the distribution chart, Purple Biotech ranks #644 out of 1381 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Purple Biotech has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Purple Biotech's Cash Ratio compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Purple Biotech ranks #644 out of 1381 companies for Cash Ratio. This puts Purple Biotech in the upper half of its industry. The industry median Cash Ratio is 2.96. Purple Biotech's value of 3.42 is 15.5% above this benchmark. Historically, Purple Biotech's own Cash Ratio has ranged from 1.14 to 18.66 over the past decade. While the company's 10-year median is 2.59 vs. the industry median of 2.96, Purple Biotech has consistently been above 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 2.96, based on 1,381 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. Purple Biotech's current Cash Ratio of 3.42 is 15.5% above 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 Purple Biotech and its competitors. For the Biotechnology industry, the median Cash Ratio is 2.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purple Biotech's current Cash Ratio is 3.42, which is 32% above median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Biotech stock overvalued right now?
Purple Biotech (PPBT) has a current Cash Ratio of 3.42. The current Cash Ratio is 3.42, which is 32% above median its 10-year median of 2.59 and 15.5% above the Biotechnology industry median of 2.96. Purple Biotech's overall GF Score™ is 21/100 with 2 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 Purple Biotech (PPBT), the current Cash Ratio is 3.42 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.
Purple Biotech Ltd is a clinical-stage biotechnology company focused on the development and commercialization of pharmaceuticals. It currently have a preclinical tri-specific antibodies platform, CAPTN-3, with its therapeutic candidates, IM1240 and IM1305, and two other oncology therapeutic candidates that are in the clinical trial phase, CM24 and NT219, neither of which has been approved for marketing and are not being sold, marketed, or commercialized.
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