Zai LabZLAB -2.81%64 Cash Ratio is 1.68 as of Mar. 2026, which is 77% below its 10-year median of 7.21. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,389 Biotechnology companies, Zai Lab ranks worse than 63.71% on this metric.
Zai Lab has a Cash Ratio of 1.68. 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 Zai Lab's Cash Ratio or its related term are showing as below:
ZLAB'
s Cash Ratio Range Over the Past 10 Years
Min: 1.66 Med: 7.21 Max: 19.03
Current: 1.68
During the past 11 years, Zai Lab's highest Cash Ratio was 19.03. The lowest was 1.66. And the median was 7.21.
ZLAB's Cash Ratio is ranked worse than 63.71% of 1389
companies
in the Biotechnology industry
Industry Median: 2.93
vs ZLAB: 1.68
Zai Lab (NAS:ZLAB) 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.
Zai Lab Cash Ratio Related Terms
Zai Lab Cash Ratio Historical Data
* Premium members only.
The historical data trend for Zai Lab'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, Zai Lab'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.
Zai Lab Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Zai Lab'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.
Zai Lab (ZLAB) has a Cash Ratio of 1.68 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Zai Lab and its competitors. This is 77% below median its historical median of 7.21. Over the past decade, Zai Lab's Cash Ratio has ranged from 1.66 to 19.03. According to the industry distribution chart, Zai Lab ranks #885 out of 1389 companies in the Biotechnology industry, placing it in the top 63.7%.
Is Zai Lab's Cash Ratio too high?
Zai Lab's current Cash Ratio of 1.68 is 77% below median its 10-year median of 7.21. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 19.03. The Biotechnology industry median Cash Ratio is 2.93. Zai Lab's value of 1.68 is 42.7% below this industry median. Based on the distribution chart, Zai Lab ranks #885 out of 1389 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Cash Ratio compare to STOK and ADMA?
According to the Biotechnology industry distribution chart, Zai Lab ranks #885 out of 1389 companies for Cash Ratio. This places Zai Lab in the lower half of its industry. The industry median Cash Ratio is 2.93. Zai Lab's value of 1.68 is 42.7% below this benchmark. Historically, Zai Lab's own Cash Ratio has ranged from 1.66 to 19.03 over the past decade. While the company's 10-year median is 7.21 vs. the industry median of 2.93, Zai Lab 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 1,389 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. Zai Lab's current Cash Ratio of 1.68 is 42.7% 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 Zai Lab 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. Zai Lab's current Cash Ratio is 1.68, which is 77% below median its own 10-year median of 7.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $18.00 — trading 40.6% below its estimated fair value. The current Cash Ratio is 1.68, which is 77% below median its 10-year median of 7.21 and 42.7% below the Biotechnology industry median of 2.93. Zai Lab's overall GF Score™ is 64/100 with 8 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 Zai Lab (ZLAB), the current Cash Ratio is 1.68 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 Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.00 is trading 40.6% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Cash Ratio: 1.68 (77% below median its 10-year median of 7.21)
GF Value™: $30.30 vs. price of $18.00 (40.6% below fair value)
Industry Position: 42.7% below the Biotechnology median (#885 of 1389)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
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