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. InterMune's current ratio for the quarter that ended in Jun. 2014 was 6.99.
InterMune has a current ratio of 6.99. 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 InterMune's Current Ratio or its related term are showing as below:
FRA:IUX'
s Current Ratio Range Over the Past 10 Years
Min: 1.08 Med: 6.95 Max: 52.48
Current: 6.99
During the past 13 years, InterMune's highest Current Ratio was 52.48. The lowest was 1.08. And the median was 6.95.
FRA:IUX's Current Ratio is not ranked
in the Biotechnology industry.
Industry Median: 3.725
vs FRA:IUX: 6.99
InterMune Current Ratio Historical Data
The historical data trend for InterMune'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.
Competitive Comparison of InterMune's Current Ratio
For the Biotechnology subindustry, InterMune'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.
InterMune's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, InterMune's Current Ratio distribution charts can be found below:
* The bar in red indicates where InterMune's Current Ratio falls into.
InterMune 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.
InterMune's Current Ratio for the fiscal year that ended in Dec. 2013 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.
InterMune (FRA:IUX) 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.
InterMune Current Ratio Related Terms
Thank you for viewing the detailed overview of InterMune's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
InterMune, Inc was incorporated in California in 1998 and reincorporated in Delaware in 2000 in connection with its initial public offering. InterMune is a biotechnology company focused on the research, development and commercialization of therapies in pulmonology and orphan fibrotic diseases. The Company's business is mainly focused on the development and commercialization of therapies within the specialized areas of pulmonology and orphan fibrotic diseases. It has an advanced-stage product candidate in pulmonology, pirfenidone that was granted marketing authorization effective February 2011 in all 27 member countries of the European Union for the treatment of adults with mild to moderate idiopathic pulmonary fibrosis. Pirfenidone is an orally active, small molecule compound under development for the treatment of idiopathic pulmonary fibrosis. Pirfenidone, a treatment for IPF, a progressive and fatal lung disease, has completed the global Phase 3 CAPACITY clinical development program. Actimmune is currently approved in the United States for the treatment of chronic granulomatous disease and severe, malignant osteopetrosis. Actimmune is also approved for commercial use in both indications in numerous other countries. CGD is a life-threatening congenital disorder that causes patients, mainly children, to be vulnerable to severe, recurrent bacterial and fungal infections. This results in frequent and prolonged hospitalizations and commonly results in death. Severe, malignant osteopetrosis is a life-threatening, congenital disorder that mainly affects children. This disease results in increased susceptibility to infection and an overgrowth of bony structures that might lead to blindness and/or deafness. The FDA and comparable regulatory agencies in state and local jurisdictions and in foreign countries impose substantial requirements upon the clinical development, manufacture and marketing of pharmaceutical products.
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