The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Innovent Biologics's Cash Ratio for the quarter that ended in Jun. 2023 was 2.66.
Innovent Biologics has a Cash Ratio of 2.66. 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 Innovent Biologics's Cash Ratio or its related term are showing as below:
HKSE:01801'
s Cash Ratio Range Over the Past 10 Years
Min: 1.17 Med: 4.77 Max: 23.56
Current: 2.45
During the past 8 years, Innovent Biologics's highest Cash Ratio was 23.56. The lowest was 1.17. And the median was 4.77.
HKSE:01801's Cash Ratio is ranked worse than 54.79% of 1524
companies
in the Biotechnology industry
Industry Median: 2.945
vs HKSE:01801: 2.45
Innovent Biologics Cash Ratio Historical Data
The historical data trend for Innovent Biologics'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 Innovent Biologics's Cash Ratio
For the Biotechnology subindustry, Innovent Biologics'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.
Innovent Biologics's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Innovent Biologics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Innovent Biologics's Cash Ratio falls into.
Innovent Biologics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Innovent Biologics's Cash Ratio for the fiscal year that ended in Dec. 2022 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.
Innovent Biologics (HKSE:01801) 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.
Innovent Biologics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Innovent Biologics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Innovent Biologics (HKSE:01801) Business Description
Innovent Biologics, or Innovent, is one of the leading biotechnology companies in China. Listed on the Hong Kong Exchange in 2018, Innovent has eight commercialized oncology products and two commercialized non-oncology products as of August 2023. Its core asset is Tyvyt, a PD-1 inhibitor included in the National Reimbursement Drug Lists for the first-line treatment of five major cancers. Innovent has over 30 strategic collaborations with global pharmaceutical or biotech companies, such as Eli Lilly, Roche Group, Incyte, and others. It also has a wide spectrum of therapeutic targets in early clinical developments. Among its upcoming pipelines, the potential blockbuster is Mazdutide, a therapy for obesity and type 2 diabetes.
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