Lonza GroupFRA:LO3 -0.07%81 Current Ratio is 1.89 as of Dec. 2025, which is 23% above its 10-year median of 1.54. GuruFocus rates FRA:LO3 with a GF Score™ of 81/100 and a GF Value™ of €642.72 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 214 Medical Diagnostics & Research companies, Lonza Group ranks worse than 51.87% 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. Lonza Group's current ratio for the quarter that ended in Dec. 2025 was 1.89.
Lonza Group has a current ratio of 1.89. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lonza Group's Current Ratio or its related term are showing as below:
FRA:LO3'
s Current Ratio Range Over the Past 10 Years
Min: 1.14 Med: 1.54 Max: 2.51
Current: 1.89
During the past 13 years, Lonza Group's highest Current Ratio was 2.51. The lowest was 1.14. And the median was 1.54.
FRA:LO3's Current Ratio is ranked worse than 51.87% of 214
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.99
vs FRA:LO3: 1.89
Lonza Group (FRA:LO3) 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.
Lonza Group Current Ratio Related Terms
Lonza Group Current Ratio Historical Data
* Premium members only.
The historical data trend for Lonza Group'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.
FRA:LO3 vs TMO, DHR, IDXX: Current Ratio Comparison
For the Diagnostics & Research subindustry, Lonza Group'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.
Lonza Group Current Ratio vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Lonza Group'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.
Lonza Group (FRA:LO3) has a Current Ratio of 1.89 as of Dec. 2025. This is 23% above median its historical median of 1.54. Over the past decade, Lonza Group's Current Ratio has ranged from 1.14 to 2.51. According to the industry distribution chart, Lonza Group ranks #111 out of 214 companies in the Medical Diagnostics & Research industry, placing it in the top 51.9%.
Is Lonza Group's Current Ratio too high?
Lonza Group's current Current Ratio of 1.89 is 23% above median its 10-year median of 1.54. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 2.51. The Medical Diagnostics & Research industry median Current Ratio is 1.99. Lonza Group's value of 1.89 is 5% below this industry median. Based on the distribution chart, Lonza Group ranks #111 out of 214 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Lonza Group has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lonza Group's Current Ratio compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Lonza Group ranks #111 out of 214 companies for Current Ratio. This places Lonza Group in the lower half of its industry. The industry median Current Ratio is 1.99. Lonza Group's value of 1.89 is 5% below this benchmark. Historically, Lonza Group's own Current Ratio has ranged from 1.14 to 2.51 over the past decade. While the company's 10-year median is 1.54 vs. the industry median of 1.99, Lonza Group has consistently been below 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 Medical Diagnostics & Research company?
The median Current Ratio among Medical Diagnostics & Research companies is 1.99, based on 214 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. Lonza Group's current Current Ratio of 1.89 is 5% below 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 Medical Diagnostics & Research industry, the median Current Ratio is 1.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lonza Group's current Current Ratio is 1.89, which is 23% above median its own 10-year median of 1.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lonza Group stock overvalued right now?
Based on GuruFocus' analysis, Lonza Group (FRA:LO3) is currently considered Modestly Undervalued. The stock's GF Value™ is €642.72, compared to a current price of €579.60 — trading 9.8% below its estimated fair value. The current Current Ratio is 1.89, which is 23% above median its 10-year median of 1.54 and 5% below the Medical Diagnostics & Research industry median of 1.99. Lonza Group's overall GF Score™ is 81/100 with 3 warning signs to review. 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 Lonza Group (FRA:LO3), the current Current Ratio is 1.89 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.
Is Lonza Group (FRA:LO3) Overvalued in 2026?
Based on GuruFocus' analysis, Lonza Group stock appears to be undervalued.
The current stock price of €579.60 is trading 9.8% below its estimated GF Value™ of €642.72.
GuruFocus considers Lonza Group to be Modestly Undervalued.
Key valuation signals for FRA:LO3:
Current Ratio: 1.89 (23% above median its 10-year median of 1.54)
GF Value™: €642.72 vs. price of €579.60 (9.8% below fair value)
Industry Position: 5% below the Medical Diagnostics & Research median (#111 of 214)
No single metric tells the full story. See the FRA:LO3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lonza Group is a contract development and manufacturing organization. It operates under four segments: small molecules, biologics, cell and gene, and capsules and health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides development and manufacturing services throughout the entire lifecycle of a product, from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.
81GF Score
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