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. Cassava Sciences's Cash Ratio for the quarter that ended in Dec. 2023 was 8.53.
Cassava Sciences has a Cash Ratio of 8.53. 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 Cassava Sciences's Cash Ratio or its related term are showing as below:
SAVA'
s Cash Ratio Range Over the Past 10 Years
Min: 8.53 Med: 23.38 Max: 50.14
Current: 8.53
During the past 13 years, Cassava Sciences's highest Cash Ratio was 50.14. The lowest was 8.53. And the median was 23.38.
SAVA's Cash Ratio is ranked better than 80% of 1525
companies
in the Biotechnology industry
Industry Median: 2.95
vs SAVA: 8.53
Cassava Sciences Cash Ratio Historical Data
The historical data trend for Cassava Sciences'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 Cassava Sciences's Cash Ratio
For the Biotechnology subindustry, Cassava Sciences'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.
Cassava Sciences's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Cassava Sciences's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cassava Sciences's Cash Ratio falls into.
Cassava Sciences Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Cassava Sciences'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.
Cassava Sciences (NAS:SAVA) 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.
Cassava Sciences Cash Ratio Related Terms
Thank you for viewing the detailed overview of Cassava Sciences's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cassava Sciences (Cassava Sciences) Business Description
Cassava Sciences Inc is a clinical-stage biotechnology company engaged in developing a scientific approach for the treatment and detection of Alzheimer's disease. Its therapeutic product candidate is called simufilam, and it is a novel treatment for Alzheimer's disease; and investigational diagnostic product candidate is called SavaDx, and it is a novel way to detect the presence of Alzheimer's disease from a small sample of blood, possibly years before the overt appearance of clinical symptoms.
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