Knight Therapeutics has a Cash Ratio of 1.46. 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 Knight Therapeutics's Cash Ratio or its related term are showing as below:
TSX:GUD'
s Cash Ratio Range Over the Past 10 Years
Min: 1.16 Med: 7.06 Max: 191.91
Current: 1.46
During the past 11 years, Knight Therapeutics's highest Cash Ratio was 191.91. The lowest was 1.16. And the median was 7.06.
TSX:GUD's Cash Ratio is ranked better than 73.03% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 0.58
vs TSX:GUD: 1.46
Knight Therapeutics Cash Ratio Historical Data
The historical data trend for Knight Therapeutics'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 Knight Therapeutics's Cash Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Knight Therapeutics'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.
Knight Therapeutics's Cash Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Knight Therapeutics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Knight Therapeutics's Cash Ratio falls into.
Knight Therapeutics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Knight Therapeutics'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.
Knight Therapeutics (TSX:GUD) 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.
Knight Therapeutics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Knight Therapeutics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and distributing pharmaceutical products, consumer health products, and medical devices in Canada, Latin America and select international markets . The company finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights. Geographically the company generates revenue from Brazil, Colombia, Argentina, Rest of LATAM, Canada, and Other, with the majority revenue generated from the Brazil region.
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