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Vectus Biosystems (ASX:VBS) Current Ratio

: 3.71 (As of Dec. 2023)
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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. Vectus Biosystems's current ratio for the quarter that ended in Dec. 2023 was 3.71.

Vectus Biosystems has a current ratio of 3.71. 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 Vectus Biosystems's Current Ratio or its related term are showing as below:

ASX:VBS' s Current Ratio Range Over the Past 10 Years
Min: 0.06   Med: 2.82   Max: 5.99
Current: 3.71

During the past 8 years, Vectus Biosystems's highest Current Ratio was 5.99. The lowest was 0.06. And the median was 2.82.

ASX:VBS's Current Ratio is ranked worse than
50.93% of 1555 companies
in the Biotechnology industry
Industry Median: 3.82 vs ASX:VBS: 3.71

Vectus Biosystems Current Ratio Historical Data

The historical data trend for Vectus Biosystems'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.

* Premium members only.

Vectus Biosystems Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Current Ratio
Premium Member Only Premium Member Only Premium Member Only 0.08 2.02 3.61 0.50 4.14

Vectus Biosystems Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.43 0.50 5.99 4.14 3.71

Competitive Comparison

For the Biotechnology subindustry, Vectus Biosystems'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.


Vectus Biosystems Current Ratio Distribution

For the Biotechnology industry and Healthcare sector, Vectus Biosystems's Current Ratio distribution charts can be found below:

* The bar in red indicates where Vectus Biosystems's Current Ratio falls into.



Vectus Biosystems Current Ratio Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Vectus Biosystems's Current Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Current Ratio (A: Jun. 2023 )=Total Current Assets (A: Jun. 2023 )/Total Current Liabilities (A: Jun. 2023 )
=4.457/1.076
=4.14

Vectus Biosystems's Current Ratio for the quarter that ended in Dec. 2023 is calculated as

Current Ratio (Q: Dec. 2023 )=Total Current Assets (Q: Dec. 2023 )/Total Current Liabilities (Q: Dec. 2023 )
=2.995/0.808
=3.71

* 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.


Vectus Biosystems  (ASX:VBS) 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.


Vectus Biosystems Current Ratio Related Terms

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Vectus Biosystems (ASX:VBS) Business Description

Traded in Other Exchanges
N/A
Address
3-11 Primrose Avenue, Rosebery, Sydney, NSW, AUS, 2018
Vectus Biosystems Ltd is an emerging biotechnology company based in Sydney, Australia. The company is in the process of developing a treatment for fibrosis and high blood pressure, which includes heart, kidney, and liver diseases. The company has also developed a technology aimed at improving the speed and accuracy of measuring the amount of DNA and RNA in samples tested in laboratories.

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