Mereo BioPharma GroupMREO +3.62%19 Current Ratio is 6.48 as of Mar. 2026, which is 7% above its 10-year median of 6.07. GuruFocus rates MREO with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 1,411 Biotechnology companies, Mereo BioPharma Group ranks better than 65.84% 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. Mereo BioPharma Group's current ratio for the quarter that ended in Mar. 2026 was 6.48.
Mereo BioPharma Group has a current ratio of 6.48. 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 Mereo BioPharma Group's Current Ratio or its related term are showing as below:
MREO'
s Current Ratio Range Over the Past 10 Years
Min: 1.02 Med: 6.07 Max: 18.94
Current: 6.48
During the past 11 years, Mereo BioPharma Group's highest Current Ratio was 18.94. The lowest was 1.02. And the median was 6.07.
MREO's Current Ratio is ranked better than 65.84% of 1411
companies
in the Biotechnology industry
Industry Median: 3.91
vs MREO: 6.48
Mereo BioPharma Group (NAS:MREO) 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.
Mereo BioPharma Group Current Ratio Related Terms
Mereo BioPharma Group Current Ratio Historical Data
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The historical data trend for Mereo BioPharma 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.
MREO vs VRTX, REGN, ALNY: Current Ratio Comparison
For the Biotechnology subindustry, Mereo BioPharma 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.
Mereo BioPharma Group Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Mereo BioPharma Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Mereo BioPharma 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.
Mereo BioPharma Group (MREO) has a Current Ratio of 6.48 as of Mar. 2026. This is near median its historical median of 6.07. Over the past decade, Mereo BioPharma Group's Current Ratio has ranged from 1.02 to 18.94. According to the industry distribution chart, Mereo BioPharma Group ranks #482 out of 1411 companies in the Biotechnology industry, placing it in the top 34.2%.
Is Mereo BioPharma Group's Current Ratio too high?
Mereo BioPharma Group's current Current Ratio of 6.48 is near median its 10-year median of 6.07. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 18.94. The Biotechnology industry median Current Ratio is 3.91. Mereo BioPharma Group's value of 6.48 is 65.7% above this industry median. Based on the distribution chart, Mereo BioPharma Group ranks #482 out of 1411 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Mereo BioPharma Group has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Mereo BioPharma Group's Current Ratio compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Mereo BioPharma Group ranks #482 out of 1411 companies for Current Ratio. This puts Mereo BioPharma Group in the upper half of its industry. The industry median Current Ratio is 3.91. Mereo BioPharma Group's value of 6.48 is 65.7% above this benchmark. Historically, Mereo BioPharma Group's own Current Ratio has ranged from 1.02 to 18.94 over the past decade. While the company's 10-year median is 6.07 vs. the industry median of 3.91, Mereo BioPharma Group has consistently been above 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 Biotechnology company?
The median Current Ratio among Biotechnology companies is 3.91, based on 1,411 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. Mereo BioPharma Group's current Current Ratio of 6.48 is 65.7% above 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 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mereo BioPharma Group's current Current Ratio is 6.48, which is near median its own 10-year median of 6.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mereo BioPharma Group stock overvalued right now?
Mereo BioPharma Group (MREO) has a current Current Ratio of 6.48. The current Current Ratio is 6.48, which is near median its 10-year median of 6.07 and 65.7% above the Biotechnology industry median of 3.91. Mereo BioPharma Group's overall GF Score™ is 19/100 with 1 warning sign 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 Mereo BioPharma Group (MREO), the current Current Ratio is 6.48 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.
Mereo BioPharma Group PLC is a United Kingdom (U.K.) based biopharmaceutical company focused on the development of therapeutics for rare diseases. The company has developed a portfolio of late-stage clinical product candidates, and its two rare disease product candidates are setrusumab for the treatment of osteogenesis imperfecta (OI) and alvelestat, mainly for the treatment of severe alpha-1 antitrypsin deficiency-associated lung disease (AATD-LD).
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