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Tarsus PharmaceuticalsTARS -2.49%47 Cash Ratio is 2.71 as of Mar. 2026, which is 80% below its 10-year median of 13.53. GuruFocus rates TARS with a GF Score™ of 47/100 and a GF Value™ of $206.39 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,385 Biotechnology companies, Tarsus Pharmaceuticals ranks worse than 52.35% on this metric.
Tarsus Pharmaceuticals has a Cash Ratio of 2.71. 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 Tarsus Pharmaceuticals's Cash Ratio or its related term are showing as below:
TARS'
s Cash Ratio Range Over the Past 10 Years
Min: 2.71 Med: 13.53 Max: 70.76
Current: 2.71
During the past 8 years, Tarsus Pharmaceuticals's highest Cash Ratio was 70.76. The lowest was 2.71. And the median was 13.53.
TARS's Cash Ratio is ranked worse than 52.35% of 1385
companies
in the Biotechnology industry
Industry Median: 2.93
vs TARS: 2.71
Tarsus Pharmaceuticals (NAS:TARS) 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.
* 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, Tarsus 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.
Tarsus Pharmaceuticals Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Tarsus 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.
Tarsus Pharmaceuticals (TARS) has a Cash Ratio of 2.71 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Tarsus Pharmaceuticals and its competitors. This is 80% below median its historical median of 13.53. Over the past decade, Tarsus Pharmaceuticals' Cash Ratio has ranged from 2.71 to 70.76. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #725 out of 1385 companies in the Biotechnology industry, placing it in the top 52.3%.
Is Tarsus Pharmaceuticals' Cash Ratio too high?
Tarsus Pharmaceuticals' current Cash Ratio of 2.71 is 80% below median its 10-year median of 13.53. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 70.76. The Biotechnology industry median Cash Ratio is 2.93. Tarsus Pharmaceuticals' value of 2.71 is 7.5% below this industry median. Based on the distribution chart, Tarsus Pharmaceuticals ranks #725 out of 1385 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Tarsus Pharmaceuticals has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Cash Ratio compare to KLRA and CLDX?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #725 out of 1385 companies for Cash Ratio. This places Tarsus Pharmaceuticals in the lower half of its industry. The industry median Cash Ratio is 2.93. Tarsus Pharmaceuticals' value of 2.71 is 7.5% below this benchmark. Historically, Tarsus Pharmaceuticals' own Cash Ratio has ranged from 2.71 to 70.76 over the past decade. While the company's 10-year median is 13.53 vs. the industry median of 2.93, Tarsus 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 1,385 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. Tarsus Pharmaceuticals's current Cash Ratio of 2.71 is 7.5% 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 Tarsus 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. Tarsus Pharmaceuticals's current Cash Ratio is 2.71, which is 80% below median its own 10-year median of 13.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $206.39, compared to a current price of $54.71 — trading 73.5% below its estimated fair value. The current Cash Ratio is 2.71, which is 80% below median its 10-year median of 13.53 and 7.5% below the Biotechnology industry median of 2.93. Tarsus Pharmaceuticals' overall GF Score™ is 47/100 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 Tarsus Pharmaceuticals (TARS), the current Cash Ratio is 2.71 as of Mar. 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.
Is Tarsus Pharmaceuticals (TARS) Overvalued in 2026?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued.
The current stock price of $54.71 is trading 73.5% below its estimated GF Value™ of $206.39.
GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TARS:
Cash Ratio: 2.71 (80% below median its 10-year median of 13.53)
GF Value™: $206.39 vs. price of $54.71 (73.5% below fair value)
Industry Position: 7.5% below the Biotechnology median (#725 of 1385)
No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
47GF Score
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