Tarsus PharmaceuticalsTARS +1.42%48 Current Ratio is 3.74 as of Mar. 2026, which is 73% below its 10-year median of 13.75. GuruFocus rates TARS with a GF Score™ of 48/100 and a GF Value™ of $201.69 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,417 Biotechnology companies, Tarsus Pharmaceuticals ranks worse than 51.24% 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. Tarsus Pharmaceuticals's current ratio for the quarter that ended in Mar. 2026 was 3.74.
Tarsus Pharmaceuticals has a current ratio of 3.74. 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 Tarsus Pharmaceuticals's Current Ratio or its related term are showing as below:
TARS'
s Current Ratio Range Over the Past 10 Years
Min: 3.74 Med: 13.75 Max: 70.85
Current: 3.74
During the past 8 years, Tarsus Pharmaceuticals's highest Current Ratio was 70.85. The lowest was 3.74. And the median was 13.75.
TARS's Current Ratio is ranked worse than 51.24% of 1417
companies
in the Biotechnology industry
Industry Median: 3.89
vs TARS: 3.74
Tarsus Pharmaceuticals (NAS:TARS) 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.
Tarsus Pharmaceuticals Current Ratio Related Terms
Tarsus Pharmaceuticals 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.
TARS vs VERA, IDYA, MLYS: Current Ratio Comparison
For the Biotechnology subindustry, Tarsus Pharmaceuticals'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.
Tarsus Pharmaceuticals Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tarsus Pharmaceuticals'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.
Tarsus Pharmaceuticals (TARS) has a Current Ratio of 3.74 as of Mar. 2026. This is 73% below median its historical median of 13.75. Over the past decade, Tarsus Pharmaceuticals' Current Ratio has ranged from 3.74 to 70.85. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #726 out of 1417 companies in the Biotechnology industry, placing it in the top 51.2%.
Is Tarsus Pharmaceuticals' Current Ratio too high?
Tarsus Pharmaceuticals' current Current Ratio of 3.74 is 73% below median its 10-year median of 13.75. Over the past 10 years, this metric has ranged from a low of 3.74 to a high of 70.85. The Biotechnology industry median Current Ratio is 3.89. Tarsus Pharmaceuticals' value of 3.74 is 3.9% below this industry median. Based on the distribution chart, Tarsus Pharmaceuticals ranks #726 out of 1417 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Tarsus Pharmaceuticals has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Current Ratio compare to VERA and IDYA?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #726 out of 1417 companies for Current Ratio. This places Tarsus Pharmaceuticals in the lower half of its industry. The industry median Current Ratio is 3.89. Tarsus Pharmaceuticals' value of 3.74 is 3.9% below this benchmark. Historically, Tarsus Pharmaceuticals' own Current Ratio has ranged from 3.74 to 70.85 over the past decade. While the company's 10-year median is 13.75 vs. the industry median of 3.89, Tarsus Pharmaceuticals has consistently been below 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 1,417 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. Tarsus Pharmaceuticals's current Current Ratio of 3.74 is 3.9% 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 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. Tarsus Pharmaceuticals's current Current Ratio is 3.74, which is 73% below median its own 10-year median of 13.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $201.69, compared to a current price of $67.11 — trading 66.7% below its estimated fair value. The current Current Ratio is 3.74, which is 73% below median its 10-year median of 13.75 and 3.9% below the Biotechnology industry median of 3.89. Tarsus Pharmaceuticals' overall GF Score™ is 48/100 with 2 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 Tarsus Pharmaceuticals (TARS), the current Current Ratio is 3.74 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 Tarsus Pharmaceuticals (TARS) Overvalued in 2026?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued.
The current stock price of $67.11 is trading 66.7% below its estimated GF Value™ of $201.69.
GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TARS:
Current Ratio: 3.74 (73% below median its 10-year median of 13.75)
GF Value™: $201.69 vs. price of $67.11 (66.7% below fair value)
Industry Position: 3.9% below the Biotechnology median (#726 of 1417)
No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
48GF Score
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