Adverum Biotechnologies has a Cash Ratio of 3.87. 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 Adverum Biotechnologies's Cash Ratio or its related term are showing as below:
ADVM'
s Cash Ratio Range Over the Past 10 Years
Min: 3.87 Med: 18.49 Max: 39.41
Current: 3.87
During the past 12 years, Adverum Biotechnologies's highest Cash Ratio was 39.41. The lowest was 3.87. And the median was 18.49.
ADVM's Cash Ratio is ranked better than 57.15% of 1524
companies
in the Biotechnology industry
Industry Median: 2.92
vs ADVM: 3.87
Adverum Biotechnologies Cash Ratio Historical Data
* 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 Adverum Biotechnologies's Cash Ratio
For the Biotechnology subindustry, Adverum Biotechnologies'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.
Adverum Biotechnologies's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Adverum Biotechnologies's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Adverum Biotechnologies's Cash Ratio falls into.
Adverum Biotechnologies Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Adverum Biotechnologies'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.
Adverum Biotechnologies (NAS:ADVM) 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.
Adverum Biotechnologies Cash Ratio Related Terms
Thank you for viewing the detailed overview of Adverum Biotechnologies's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Adverum Biotechnologies (Adverum Biotechnologies) Business Description
Adverum Biotechnologies Inc is a U.S.-based clinical-stage gene therapy company. It develops gene therapy product candidates intended to provide durable efficacy by inducing sustained expression of a therapeutic protein. The company primarily generates revenue through license, research and collaboration arrangements with its strategic partners. Its lead product candidate is ADVM-022 which is a single, in-office intravitreal (IVT) injection gene therapy designed to deliver long-term durable levels of aflibercept associated with a robust, sustained treatment response, reducing the treatment burden and fluctuations in macular fluid associated with frequent anti-vascular endothelial growth factor (VEGF) injections. It has one segment developing and commercializing gene therapeutics.
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