What is Teva Pharmaceutical Industries Current Ratio?
Teva Pharmaceutical IndustriesFRA:TEV +2.68%60 Current Ratio is 1.01 as of Mar. 2026, which is 1% above its 10-year median of 1.00. GuruFocus rates FRA:TEV with a GF Score™ of 60/100 and a GF Value™ of €17.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 997 Drug Manufacturers companies, Teva Pharmaceutical Industries ranks worse than 82.85% on this metric.
Teva Pharmaceutical Industries has a current ratio of 1.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for Teva Pharmaceutical Industries's Current Ratio or its related term are showing as below:
FRA:TEV'
s Current Ratio Range Over the Past 10 Years
Min: 0.86 Med: 1 Max: 1.27
Current: 1.01
During the past 13 years, Teva Pharmaceutical Industries's highest Current Ratio was 1.27. The lowest was 0.86. And the median was 1.00.
FRA:TEV's Current Ratio is ranked worse than 82.85% of 997
companies
in the Drug Manufacturers industry
Industry Median: 2
vs FRA:TEV: 1.01
Teva Pharmaceutical Industries (FRA:TEV) 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.
Teva Pharmaceutical Industries Current Ratio Related Terms
Teva Pharmaceutical Industries 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.
Teva Pharmaceutical Industries Current Ratio Chart
FRA:TEV vs ZTS, UTHR, VTRS: Current Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.
Teva Pharmaceutical Industries Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries'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.
Teva Pharmaceutical Industries (FRA:TEV) has a Current Ratio of 1.01 as of Mar. 2026. This is near median its historical median of 1.00. Over the past decade, Teva Pharmaceutical Industries' Current Ratio has ranged from 0.86 to 1.27. According to the industry distribution chart, Teva Pharmaceutical Industries ranks #826 out of 997 companies in the Drug Manufacturers industry, placing it in the top 82.8%.
Is Teva Pharmaceutical Industries' Current Ratio too high?
Teva Pharmaceutical Industries' current Current Ratio of 1.01 is near median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 1.27. The Drug Manufacturers industry median Current Ratio is 2.00. Teva Pharmaceutical Industries' value of 1.01 is 49.5% below this industry median. Based on the distribution chart, Teva Pharmaceutical Industries ranks #826 out of 997 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Teva Pharmaceutical Industries has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' Current Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Teva Pharmaceutical Industries ranks #826 out of 997 companies for Current Ratio. This places Teva Pharmaceutical Industries in the lower half of its industry. The industry median Current Ratio is 2.00. Teva Pharmaceutical Industries' value of 1.01 is 49.5% below this benchmark. Historically, Teva Pharmaceutical Industries' own Current Ratio has ranged from 0.86 to 1.27 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 2.00, Teva Pharmaceutical Industries 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 997 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. Teva Pharmaceutical Industries's current Current Ratio of 1.01 is 49.5% 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 Drug Manufacturers industry, the median Current Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teva Pharmaceutical Industries's current Current Ratio is 1.01, which is near median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teva Pharmaceutical Industries stock overvalued right now?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries (FRA:TEV) is currently considered Significantly Overvalued. The stock's GF Value™ is €17.78, compared to a current price of €30.60 — trading 72.1% above its estimated fair value. The current Current Ratio is 1.01, which is near median its 10-year median of 1.00 and 49.5% below the Drug Manufacturers industry median of 2.00. Teva Pharmaceutical Industries' overall GF Score™ is 60/100 with 5 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 Teva Pharmaceutical Industries (FRA:TEV), the current Current Ratio is 1.01 as of Mar. 2026. 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 Teva Pharmaceutical Industries (FRA:TEV) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of €30.60 is trading 72.1% above its estimated GF Value™ of €17.78.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for FRA:TEV:
Current Ratio: 1.01 (near median its 10-year median of 1.00)
GF Value™: €17.78 vs. price of €30.60 (72.1% above fair value)
Industry Position: 49.5% below the Drug Manufacturers median (#826 of 997)
No single metric tells the full story. See the FRA:TEV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teva Pharmaceutical Industries Business Description
Teva Pharmaceutical, based in Israel, is the world's leading generic drug manufacturer. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in two main therapeutic areas: neurology and immunology. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.
60GF Score
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