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. Sino Biopharmaceutical's current ratio for the quarter that ended in Jun. 2024 was 1.15.
Sino Biopharmaceutical has a current ratio of 1.15. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sino Biopharmaceutical's Current Ratio or its related term are showing as below:
SBMFF'
s Current Ratio Range Over the Past 10 Years
Min: 1 Med: 1.92 Max: 3.27
Current: 1.15
During the past 13 years, Sino Biopharmaceutical's highest Current Ratio was 3.27. The lowest was 1.00. And the median was 1.92.
SBMFF's Current Ratio is ranked worse than 79.91% of 1503
companies
in the Biotechnology industry
Industry Median: 3.69
vs SBMFF: 1.15
Sino Biopharmaceutical 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.
Competitive Comparison of Sino Biopharmaceutical's Current Ratio
For the Biotechnology subindustry, Sino Biopharmaceutical'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.
Sino Biopharmaceutical's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sino Biopharmaceutical's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sino Biopharmaceutical's Current Ratio falls into.
Sino Biopharmaceutical 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.
Sino Biopharmaceutical's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Sino Biopharmaceutical (OTCPK:SBMFF) 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.
Sino Biopharmaceutical Current Ratio Related Terms
Thank you for viewing the detailed overview of Sino Biopharmaceutical's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Listed on the Hong Kong Stock Exchange in 2000, Sino Biopharmaceutical is one of the largest Chinese drugmakers. It started with generic drug manufacturing. Since 2018, Sino Biopharm has been actively pivoting into an innovative drugmaker after the Chinese government launched its volume-based procurement policy for the healthcare industry. As of 2023, 37.8% of the firm's total revenue comes from five innovative drugs and five biosimilar drugs. Sino Biopharm's biggest revenue segment is oncology medicines, accounting for 33.6% of total revenue, followed by hepatitis, surgery/analgesia, respiratory, and cardio-cerebral vascular therapeutic areas.
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