Praxis Precision MedicinesPRAX -0.02%38 Current Ratio is 15.88 as of Mar. 2026, which is 124% above its 10-year median of 7.08. GuruFocus rates PRAX with a GF Score™ of 38/100 and a GF Value™ of $31.07 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,413 Biotechnology companies, Praxis Precision Medicines ranks better than 87.83% 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. Praxis Precision Medicines's current ratio for the quarter that ended in Mar. 2026 was 15.88.
Praxis Precision Medicines has a current ratio of 15.88. 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 Praxis Precision Medicines's Current Ratio or its related term are showing as below:
PRAX'
s Current Ratio Range Over the Past 10 Years
Min: 2.51 Med: 7.08 Max: 22.08
Current: 15.88
During the past 8 years, Praxis Precision Medicines's highest Current Ratio was 22.08. The lowest was 2.51. And the median was 7.08.
PRAX's Current Ratio is ranked better than 87.83% of 1413
companies
in the Biotechnology industry
Industry Median: 3.89
vs PRAX: 15.88
Praxis Precision Medicines (NAS:PRAX) 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.
Praxis Precision Medicines Current Ratio Related Terms
Praxis Precision Medicines 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.
PRAX vs KRYS, CYTK, NUVL: Current Ratio Comparison
For the Biotechnology subindustry, Praxis Precision Medicines'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.
Praxis Precision Medicines Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's Current Ratio distribution charts can be found below:
* The bar in red indicates where Praxis Precision Medicines'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.
Praxis Precision Medicines (PRAX) has a Current Ratio of 15.88 as of Mar. 2026. This is 124% above median its historical median of 7.08. Over the past decade, Praxis Precision Medicines' Current Ratio has ranged from 2.51 to 22.08. According to the industry distribution chart, Praxis Precision Medicines ranks #172 out of 1413 companies in the Biotechnology industry, placing it in the top 12.2%.
Is Praxis Precision Medicines' Current Ratio too high?
Praxis Precision Medicines' current Current Ratio of 15.88 is 124% above median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 2.51 to a high of 22.08. The Biotechnology industry median Current Ratio is 3.89. Praxis Precision Medicines' value of 15.88 is 308.2% above this industry median. Based on the distribution chart, Praxis Precision Medicines ranks #172 out of 1413 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Praxis Precision Medicines has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Praxis Precision Medicines' Current Ratio compare to KRYS and CYTK?
According to the Biotechnology industry distribution chart, Praxis Precision Medicines ranks #172 out of 1413 companies for Current Ratio. This places Praxis Precision Medicines in the top 12% of its industry — outperforming the majority of peers. The industry median Current Ratio is 3.89. Praxis Precision Medicines' value of 15.88 is 308.2% above this benchmark. Historically, Praxis Precision Medicines' own Current Ratio has ranged from 2.51 to 22.08 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 3.89, Praxis Precision Medicines 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 3.89, based on 1,413 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. Praxis Precision Medicines's current Current Ratio of 15.88 is 308.2% 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 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Praxis Precision Medicines's current Current Ratio is 15.88, which is 124% above median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praxis Precision Medicines stock overvalued right now?
Based on GuruFocus' analysis, Praxis Precision Medicines (PRAX) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.07, compared to a current price of $327.79 — trading 955% above its estimated fair value. The current Current Ratio is 15.88, which is 124% above median its 10-year median of 7.08 and 308.2% above the Biotechnology industry median of 3.89. Praxis Precision Medicines' overall GF Score™ is 38/100 with 3 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 Praxis Precision Medicines (PRAX), the current Current Ratio is 15.88 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 Praxis Precision Medicines (PRAX) Overvalued in 2026?
Based on GuruFocus' analysis, Praxis Precision Medicines stock appears to be overvalued.
The current stock price of $327.79 is trading 955% above its estimated GF Value™ of $31.07.
GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.
Key valuation signals for PRAX:
Current Ratio: 15.88 (124% above median its 10-year median of 7.08)
GF Value™: $31.07 vs. price of $327.79 (955% above fair value)
Industry Position: 308.2% above the Biotechnology median (#172 of 1413)
No single metric tells the full story. See the PRAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praxis Precision Medicines Inc is a clinical-stage biopharmaceutical company. It is engaged in translating genetic insights into the development of therapies for patients affected by central nervous system disorders characterized by a neuronal excitation-inhibition imbalance. The company applies genetic insights to the discovery and development of therapies for neurological disorders through two proprietary platforms: Cerebrum and Solidus. It has established a diversified, multimodal CNS portfolio with four clinical-stage product candidates across movement disorders and epilepsy, which include Ulixacaltamide, Relutrigine, Vormatrigine, and Elsunersen. The firm operates in only one segment and is focused on discovering and developing therapies for CNS disorders.
38GF Score
Get the complete analysis for PRAX
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRAX has been successfully added to your 
