Arovella TherapeuticsASX:ALA Current Ratio is 15.35 as of Dec. 2025, which is 469% above its 10-year median of 2.70. The stock has 1 warning sign investors should review. Among 1,416 Biotechnology companies, Arovella Therapeutics ranks better than 87.08% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Arovella Therapeutics's current ratio for the quarter that ended in Dec. 2025 was 15.35.
Arovella Therapeutics has a current ratio of 15.35. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Arovella Therapeutics's Current Ratio or its related term are showing as below:
ASX:ALA'
s Current Ratio Range Over the Past 10 Years
Min: 0.28 Med: 2.7 Max: 15.35
Current: 15.35
During the past 13 years, Arovella Therapeutics's highest Current Ratio was 15.35. The lowest was 0.28. And the median was 2.70.
ASX:ALA's Current Ratio is ranked better than 87.08% of 1416
companies
in the Biotechnology industry
Industry Median: 3.885
vs ASX:ALA: 15.35
Arovella Therapeutics (ASX:ALA) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Arovella Therapeutics Current Ratio Related Terms
Arovella Therapeutics Current Ratio Historical Data
* Premium members only.
The historical data trend for Arovella Therapeutics's Current 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.
ASX:ALA vs VRTX, REGN, ALNY: Current Ratio Comparison
For the Biotechnology subindustry, Arovella Therapeutics's Current Ratio, along with its competitors' market caps and Current 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.
Arovella Therapeutics Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Arovella Therapeutics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Arovella Therapeutics's Current Ratio falls into.
* 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.
Arovella Therapeutics (ASX:ALA) has a Current Ratio of 15.35 as of Dec. 2025. This is 469% above median its historical median of 2.70. Over the past decade, Arovella Therapeutics' Current Ratio has ranged from 0.28 to 15.35. According to the industry distribution chart, Arovella Therapeutics ranks #183 out of 1416 companies in the Biotechnology industry, placing it in the top 12.9%.
Is Arovella Therapeutics' Current Ratio too high?
Arovella Therapeutics' current Current Ratio of 15.35 is 469% above median its 10-year median of 2.70. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 15.35. The Biotechnology industry median Current Ratio is 3.89. Arovella Therapeutics' value of 15.35 is 295.1% above this industry median. Based on the distribution chart, Arovella Therapeutics ranks #183 out of 1416 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers.
How does Arovella Therapeutics' Current Ratio compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Arovella Therapeutics ranks #183 out of 1416 companies for Current Ratio. This places Arovella Therapeutics in the top 13% of its industry — outperforming the majority of peers. The industry median Current Ratio is 3.89. Arovella Therapeutics' value of 15.35 is 295.1% above this benchmark. Historically, Arovella Therapeutics' own Current Ratio has ranged from 0.28 to 15.35 over the past decade. While the company's 10-year median is 2.70 vs. the industry median of 3.89, Arovella Therapeutics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Biotechnology company?
The median Current Ratio among Biotechnology companies is 3.89, based on 1,416 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arovella Therapeutics's current Current Ratio of 15.35 is 295.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Biotechnology industry, the median Current Ratio is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arovella Therapeutics's current Current Ratio is 15.35, which is 469% above median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arovella Therapeutics stock overvalued right now?
Arovella Therapeutics (ASX:ALA) has a current Current Ratio of 15.35. The current Current Ratio is 15.35, which is 469% above median its 10-year median of 2.70 and 295.1% above the Biotechnology industry median of 3.89. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Arovella Therapeutics (ASX:ALA), the current Current Ratio is 15.35 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arovella Therapeutics Ltd is a biotechnology company focused on developing its invariant natural killer T (iNKT) cell therapy platform from Imperial College London to treat blood cancers and solid tumours. The company's lead iNKT cell product is ALA-101. ALA-101 consists of iNKT cells engineered to produce a Chimeric Antigen Receptor (CAR) targeting CD19 on their surface. This CD19-targeting CAR allows the iNKT cells to find and kill tumour cells that express CD19.
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