Angel Biotechnology Holdings (LSE:ABH) Current Ratio: 0.48 (As of Sep. 2012)


What is Angel Biotechnology Holdings Current Ratio?

Angel Biotechnology Holdings LSE:ABH Current Ratio is 0.48 as of Sep. 2012. The stock has 2 warning signs investors should review.

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. Angel Biotechnology Holdings's current ratio for the quarter that ended in Sep. 2012 was 0.48.

Angel Biotechnology Holdings has a current ratio of 0.48. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Angel Biotechnology Holdings has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

The historical rank and industry rank for Angel Biotechnology Holdings's Current Ratio or its related term are showing as below:

LSE:ABH's Current Ratio is not ranked *
in the Biotechnology industry.
Industry Median: 3.89
* Ranked among companies with meaningful Current Ratio only.

Angel Biotechnology Holdings  (LSE:ABH) 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.

Angel Biotechnology Holdings Current Ratio Related Terms

Angel Biotechnology Holdings Current Ratio Historical Data

* Premium members only.

The historical data trend for Angel Biotechnology Holdings'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.

Angel Biotechnology Holdings Current Ratio Chart

Angel Biotechnology Holdings Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec07 Dec08 Dec09 Dec10 Mar12
Current Ratio
Get a 7-Day Free Trial Premium Member Only 0.20 0.18 0.13 0.77 2.24

Angel Biotechnology Holdings Semi-Annual Data
Jun05 Dec05 Jun06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Mar12 Sep12
Current Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.74 0.77 5.74 2.24 0.48

Angel Biotechnology Holdings Current Ratio Competitor Comparison

For the Biotechnology subindustry, Angel Biotechnology Holdings'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.

Angel Biotechnology Holdings Current Ratio vs Biotechnology Industry

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

* The bar in red indicates where Angel Biotechnology Holdings's Current Ratio falls into.


Angel Biotechnology Holdings 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.

Angel Biotechnology Holdings's Current Ratio for the fiscal year that ended in Mar. 2012 is calculated as

Current Ratio (A: Mar. 2012 )=Total Current Assets (A: Mar. 2012 )/Total Current Liabilities (A: Mar. 2012 )
=1.706/0.76
=2.24

Angel Biotechnology Holdings's Current Ratio for the quarter that ended in Sep. 2012 is calculated as

Current Ratio (Q: Sep. 2012 )=Total Current Assets (Q: Sep. 2012 )/Total Current Liabilities (Q: Sep. 2012 )
=1.195/2.464
=0.48

* 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.

Frequently Asked Questions Learn more about Current Ratio →
What does a Current Ratio of 0.48 mean?
Angel Biotechnology Holdings (LSE:ABH) has a Current Ratio of 0.48 as of Sep. 2012.
Is Angel Biotechnology Holdings' Current Ratio too high?
Angel Biotechnology Holdings' current Current Ratio is 0.48. The Biotechnology industry median Current Ratio is 3.89. Angel Biotechnology Holdings' value of 0.48 is 87.7% below this industry median.
How does Angel Biotechnology Holdings' Current Ratio compare to competitors?
Angel Biotechnology Holdings' Current Ratio of 0.48 can be compared against companies in the Biotechnology industry. The industry median Current Ratio is 3.89. Angel Biotechnology Holdings' value of 0.48 is 87.7% below this benchmark. 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 Biotechnology company?
The median Current Ratio among Biotechnology companies is 3.89, based on 1,412 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. Angel Biotechnology Holdings's current Current Ratio of 0.48 is 87.7% 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 Biotechnology industry, the median Current Ratio is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Angel Biotechnology Holdings's current Current Ratio is 0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Angel Biotechnology Holdings stock overvalued right now?
Angel Biotechnology Holdings (LSE:ABH) has a current Current Ratio of 0.48. The current Current Ratio is 0.48 and 87.7% below the Biotechnology industry median of 3.89. 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 Angel Biotechnology Holdings (LSE:ABH), the current Current Ratio is 0.48 as of Sep. 2012. 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.