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. Neptune Wellness Solutions's current ratio for the quarter that ended in Dec. 2023 was 0.23.
Neptune Wellness Solutions has a current ratio of 0.23. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Neptune Wellness Solutions 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 Neptune Wellness Solutions's Current Ratio or its related term are showing as below:
NEPTF's Current Ratio is not ranked *
in the Drug Manufacturers industry.
Industry Median: 2 * Ranked among companies with meaningful Current Ratio only.
Neptune Wellness Solutions (OTCPK:NEPTF) 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.
Neptune Wellness Solutions Current Ratio Related Terms
Neptune Wellness Solutions 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.
NEPTF vs CPMD, CLVR, THCT: Current Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Neptune Wellness Solutions'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.
Neptune Wellness Solutions Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neptune Wellness Solutions's Current Ratio distribution charts can be found below:
* The bar in red indicates where Neptune Wellness Solutions'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.
Neptune Wellness Solutions (NEPTF) has a Current Ratio of 0.23 as of Dec. 2023.
Is Neptune Wellness Solutions' Current Ratio too high?
Neptune Wellness Solutions' current Current Ratio is 0.23. The Drug Manufacturers industry median Current Ratio is 2.00. Neptune Wellness Solutions' value of 0.23 is 88.5% below this industry median. Overall, Neptune Wellness Solutions has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Neptune Wellness Solutions' Current Ratio compare to CPMD and CLVR?
Neptune Wellness Solutions' Current Ratio of 0.23 can be compared against companies in the Drug Manufacturers industry. The industry median Current Ratio is 2.00. Neptune Wellness Solutions' value of 0.23 is 88.5% 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 995 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. Neptune Wellness Solutions's current Current Ratio of 0.23 is 88.5% 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. Neptune Wellness Solutions's current Current Ratio is 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neptune Wellness Solutions stock overvalued right now?
Neptune Wellness Solutions (NEPTF) has a current Current Ratio of 0.23. The current Current Ratio is 0.23 and 88.5% below the Drug Manufacturers industry median of 2.00. Neptune Wellness Solutions' overall GF Score™ is 16/100. 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 Neptune Wellness Solutions (NEPTF), the current Current Ratio is 0.23 as of Dec. 2023. 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.
Neptune Wellness Solutions Inc is a consumer-packaged goods company that aims to innovate health and wellness products. It focuses on developing a portfolio of high-quality, affordable consumer products that align with the latest market trends for natural, sustainable, plant-based and purpose-driven lifestyle brands. The company's products include organic food and beverage brands such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. The company derives maximum revenue from United States.
16GF Score
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