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. KYTHERA Biopharmaceuticals's current ratio for the quarter that ended in Jun. 2015 was 8.13.
KYTHERA Biopharmaceuticals has a current ratio of 8.13. 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 KYTHERA Biopharmaceuticals's Current Ratio or its related term are showing as below:
FRA:KYT'
s Current Ratio Range Over the Past 10 Years
Min: 1.81 Med: 5.22 Max: 11.36
Current: 8.13
During the past 5 years, KYTHERA Biopharmaceuticals's highest Current Ratio was 11.36. The lowest was 1.81. And the median was 5.22.
FRA:KYT's Current Ratio is not ranked
in the Drug Manufacturers industry.
Industry Median: 1.88
vs FRA:KYT: 8.13
KYTHERA Biopharmaceuticals Current Ratio Historical Data
* 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 KYTHERA Biopharmaceuticals's Current Ratio
For the Drug Manufacturers - General subindustry, KYTHERA Biopharmaceuticals'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.
KYTHERA Biopharmaceuticals's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, KYTHERA Biopharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where KYTHERA Biopharmaceuticals's Current Ratio falls into.
KYTHERA Biopharmaceuticals 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.
* 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.
KYTHERA Biopharmaceuticals (FRA:KYT) 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.
KYTHERA Biopharmaceuticals Current Ratio Related Terms
Thank you for viewing the detailed overview of KYTHERA Biopharmaceuticals's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
KYTHERA Biopharmaceuticals (FRA:KYT) Business Description
KYTHERA Biopharmaceuticals Inc was incorporated in Delaware in June 2004 under the name Dermion, Inc. It commenced operations in August 2005, and it changed its name to AESTHERx, Inc. In July 2006, it changed its name to KYTHERA Biopharmaceuticals, Inc. It is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel prescription products for the aesthetic medicine market. The Company's objective is to develop first-in-class, prescription aesthetic products using an approach that relies on the scientific rigor of biotechnology to address unmet needs in the rapidly-growing market for aesthetic medicine. The Company's initial focus is on the facial aesthetics market, which comprises the majority of the aesthetic medicine market. The Company's product candidate, ATX-101, is a potential first-in-class, injectable drug in late stage clinical development for the reduction of submental fat, which commonly presents as an undesirable double chin. Based on clinical trials conducted to date, ATX-101 has exhibited significant, meaningful and long-lasting results in the reduction of submental fat.
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