Pharma-Bio Serv has a Cash Ratio of 4.32. 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 Pharma-Bio Serv's Cash Ratio or its related term are showing as below:
PBSV'
s Cash Ratio Range Over the Past 10 Years
Min: 3.43 Med: 6.88 Max: 9.73
Current: 4.32
During the past 13 years, Pharma-Bio Serv's highest Cash Ratio was 9.73. The lowest was 3.43. And the median was 6.88.
PBSV's Cash Ratio is ranked better than 91.28% of 654
companies
in the Healthcare Providers & Services industry
Industry Median: 0.5
vs PBSV: 4.32
Pharma-Bio Serv Cash Ratio Historical Data
The historical data trend for Pharma-Bio Serv'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 Pharma-Bio Serv's Cash Ratio
For the Health Information Services subindustry, Pharma-Bio Serv'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.
Pharma-Bio Serv's Cash Ratio Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pharma-Bio Serv's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Pharma-Bio Serv's Cash Ratio falls into.
Pharma-Bio Serv Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Pharma-Bio Serv's Cash Ratio for the fiscal year that ended in Oct. 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.
Pharma-Bio Serv (OTCPK:PBSV) 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.
Pharma-Bio Serv Cash Ratio Related Terms
Thank you for viewing the detailed overview of Pharma-Bio Serv's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Pharma-Bio Serv (Pharma-Bio Serv) Business Description
Pharma-Bio Serv Inc is a compliance and technology transfer services consulting firm. It also provides microbiological testing services and chemical testing services through its laboratory testing facility in Puerto Rico. It has three reportable segments: Puerto Rico technical compliance consulting which is the key revenue driver; United States technical compliance consulting; and Europe technical compliance consulting. The company offers solutions to the pharmaceutical, chemical, biotechnology, medical devices, cosmetic and food industries, and allied products companies.
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