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. Aptorum Group's Cash Ratio for the quarter that ended in Jun. 2023 was 0.24.
Aptorum Group has a Cash Ratio of 0.24. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Aptorum Group's Cash Ratio or its related term are showing as below:
APM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.16 Med: 1.66 Max: 13.69
Current: 0.24
During the past 6 years, Aptorum Group's highest Cash Ratio was 13.69. The lowest was 0.16. And the median was 1.66.
APM's Cash Ratio is ranked worse than 90.16% of 1524
companies
in the Biotechnology industry
Industry Median: 2.945
vs APM: 0.24
Aptorum Group Cash Ratio Historical Data
The historical data trend for Aptorum Group'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 Aptorum Group's Cash Ratio
For the Biotechnology subindustry, Aptorum Group'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.
Aptorum Group's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Aptorum Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Aptorum Group's Cash Ratio falls into.
Aptorum Group Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Aptorum Group'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.
Aptorum Group (NAS:APM) 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.
Aptorum Group Cash Ratio Related Terms
Thank you for viewing the detailed overview of Aptorum Group's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Aptorum Group (Aptorum Group) Business Description
Aptorum Group Ltd clinical-stage biopharmaceutical company. It is engaged in the discovery, development, and commercialization of therapeutic assets to treat diseases with unmet medical needs, particularly in oncology (including orphan oncology indications) and infectious diseases. The company operates in two segments: Therapeutics and Non-Therapeutics. The projects are ALS-4, SACT-1, and RPIDD. It is also engaged in providing healthcare services.
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