VerastemVSTM +2.41%15 Cash Ratio is 2.72 as of Mar. 2026, which is 47% below its 10-year median of 5.13. GuruFocus rates VSTM with a GF Score™ of 15/100. The stock has 7 warning signs investors should review. Among 1,386 Biotechnology companies, Verastem ranks worse than 52.24% on this metric.
Verastem has a Cash Ratio of 2.72. 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 Verastem's Cash Ratio or its related term are showing as below:
VSTM'
s Cash Ratio Range Over the Past 10 Years
Min: 2.31 Med: 5.13 Max: 15.67
Current: 2.72
During the past 13 years, Verastem's highest Cash Ratio was 15.67. The lowest was 2.31. And the median was 5.13.
VSTM's Cash Ratio is ranked worse than 52.24% of 1386
companies
in the Biotechnology industry
Industry Median: 2.94
vs VSTM: 2.72
Verastem (NAS:VSTM) 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.
Verastem Cash Ratio Related Terms
Verastem Cash Ratio Historical Data
* Premium members only.
The historical data trend for Verastem'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, Verastem'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.
Verastem Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verastem's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Verastem'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.
Verastem (VSTM) has a Cash Ratio of 2.72 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Verastem and its competitors. This is 47% below median its historical median of 5.13. Over the past decade, Verastem's Cash Ratio has ranged from 2.31 to 15.67. According to the industry distribution chart, Verastem ranks #724 out of 1386 companies in the Biotechnology industry, placing it in the top 52.2%.
Is Verastem's Cash Ratio too high?
Verastem's current Cash Ratio of 2.72 is 47% below median its 10-year median of 5.13. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 15.67. The Biotechnology industry median Cash Ratio is 2.94. Verastem's value of 2.72 is 7.5% below this industry median. Based on the distribution chart, Verastem ranks #724 out of 1386 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Verastem has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Verastem's Cash Ratio compare to IRD and PALI?
According to the Biotechnology industry distribution chart, Verastem ranks #724 out of 1386 companies for Cash Ratio. This places Verastem in the lower half of its industry. The industry median Cash Ratio is 2.94. Verastem's value of 2.72 is 7.5% below this benchmark. Historically, Verastem's own Cash Ratio has ranged from 2.31 to 15.67 over the past decade. While the company's 10-year median is 5.13 vs. the industry median of 2.94, Verastem 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 2.94, based on 1,386 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. Verastem's current Cash Ratio of 2.72 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 Verastem and its competitors. For the Biotechnology industry, the median Cash Ratio is 2.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verastem's current Cash Ratio is 2.72, which is 47% below median its own 10-year median of 5.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verastem stock overvalued right now?
Verastem (VSTM) has a current Cash Ratio of 2.72. The current Cash Ratio is 2.72, which is 47% below median its 10-year median of 5.13 and 7.5% below the Biotechnology industry median of 2.94. Verastem's overall GF Score™ is 15/100 with 7 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 Verastem (VSTM), the current Cash Ratio is 2.72 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.
Verastem Inc is late-stage development biopharmaceutical company, committed to advancing new medicines for patients battling cancer. Its pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition.
15GF Score
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