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. Nuvalent's current ratio for the quarter that ended in Dec. 2024 was 20.96.
Nuvalent has a current ratio of 20.96. 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 Nuvalent's Current Ratio or its related term are showing as below:
NUVL'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 21.9 Max: 33.07
Current: 20.96
During the past 6 years, Nuvalent's highest Current Ratio was 33.07. The lowest was 0.76. And the median was 21.90.
NUVL's Current Ratio is ranked better than 93.52% of 1497
companies
in the Biotechnology industry
Industry Median: 3.69
vs NUVL: 20.96
Nuvalent Current Ratio Historical Data
The historical data trend for Nuvalent'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.
Competitive Comparison of Nuvalent's Current Ratio
For the Biotechnology subindustry, Nuvalent'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.
Nuvalent's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Nuvalent's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nuvalent's Current Ratio falls into.
Nuvalent 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.
Nuvalent's Current Ratio for the fiscal year that ended in Dec. 2024 is calculated as
* 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.
Nuvalent (NAS:NUVL) 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.
Nuvalent Current Ratio Related Terms
Thank you for viewing the detailed overview of Nuvalent's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Nuvalent Inc is a clinical stage biopharmaceutical company focused on creating precisely targeted therapies for patients with cancer. All of the Company's operations are in the United States. The company is engaged in developing small molecules that are designed to overcome the limitations of existing therapies for clinically proven kinase targets. The product candidates of the company include NVL-520, which is being developed for patients with ROS1-positive non-small cell lung cancer (NSCLC), NVL-655, which is being developed for patients with anaplastic lymphoma kinase (ALK)-positive NSCLC, NVL-330, is a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to address the combined medical need of treating tumors driven by HER2ex20.
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