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Formosa PharmaceuticalsTPE:6838 -1.67%48 Current Ratio is 9.11 as of Dec. 2025, which is 39% above its 10-year median of 6.56. GuruFocus rates TPE:6838 with a GF Score™ of 48/100 and a GF Value™ of NT$14.25 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,411 Biotechnology companies, Formosa Pharmaceuticals ranks better than 75.48% 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. Formosa Pharmaceuticals's current ratio for the quarter that ended in Dec. 2025 was 9.11.
Formosa Pharmaceuticals has a current ratio of 9.11. 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 Formosa Pharmaceuticals's Current Ratio or its related term are showing as below:
TPE:6838'
s Current Ratio Range Over the Past 10 Years
Min: 1.19 Med: 6.56 Max: 12.15
Current: 9.11
During the past 7 years, Formosa Pharmaceuticals's highest Current Ratio was 12.15. The lowest was 1.19. And the median was 6.56.
TPE:6838's Current Ratio is ranked better than 75.48% of 1411
companies
in the Biotechnology industry
Industry Median: 3.88
vs TPE:6838: 9.11
Formosa Pharmaceuticals (TPE:6838) 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.
Formosa Pharmaceuticals Current Ratio Related Terms
Formosa 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.
TPE:6838 vs VRTX, REGN, ALNY: Current Ratio Comparison
For the Biotechnology subindustry, Formosa 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.
Formosa Pharmaceuticals Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Formosa Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Formosa 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.
Formosa Pharmaceuticals (TPE:6838) has a Current Ratio of 9.11 as of Dec. 2025. This is 39% above median its historical median of 6.56. Over the past decade, Formosa Pharmaceuticals' Current Ratio has ranged from 1.19 to 12.15. According to the industry distribution chart, Formosa Pharmaceuticals ranks #346 out of 1411 companies in the Biotechnology industry, placing it in the top 24.5%.
Is Formosa Pharmaceuticals' Current Ratio too high?
Formosa Pharmaceuticals' current Current Ratio of 9.11 is 39% above median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 12.15. The Biotechnology industry median Current Ratio is 3.88. Formosa Pharmaceuticals' value of 9.11 is 134.8% above this industry median. Based on the distribution chart, Formosa Pharmaceuticals ranks #346 out of 1411 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa Pharmaceuticals has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Pharmaceuticals' Current Ratio compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Formosa Pharmaceuticals ranks #346 out of 1411 companies for Current Ratio. This places Formosa Pharmaceuticals in the top 25% of its industry — outperforming the majority of peers. The industry median Current Ratio is 3.88. Formosa Pharmaceuticals' value of 9.11 is 134.8% above this benchmark. Historically, Formosa Pharmaceuticals' own Current Ratio has ranged from 1.19 to 12.15 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 3.88, Formosa Pharmaceuticals 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 3.88, based on 1,411 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. Formosa Pharmaceuticals's current Current Ratio of 9.11 is 134.8% 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 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Pharmaceuticals's current Current Ratio is 9.11, which is 39% above median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Formosa Pharmaceuticals (TPE:6838) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$14.25, compared to a current price of NT$23.60 — trading 65.6% above its estimated fair value. The current Current Ratio is 9.11, which is 39% above median its 10-year median of 6.56 and 134.8% above the Biotechnology industry median of 3.88. Formosa Pharmaceuticals' overall GF Score™ is 48/100 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 Formosa Pharmaceuticals (TPE:6838), the current Current Ratio is 9.11 as of Dec. 2025. 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 Formosa Pharmaceuticals (TPE:6838) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Pharmaceuticals stock appears to be overvalued.
The current stock price of NT$23.60 is trading 65.6% above its estimated GF Value™ of NT$14.25.
GuruFocus considers Formosa Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for TPE:6838:
Current Ratio: 9.11 (39% above median its 10-year median of 6.56)
GF Value™: NT$14.25 vs. price of NT$23.60 (65.6% above fair value)
Industry Position: 134.8% above the Biotechnology median (#346 of 1411)
No single metric tells the full story. See the TPE:6838 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Pharmaceuticals Inc is engaged in new drug development and transfers. Its Product pipeline includes TSY-110, TSY-120, TSY-310, APP13007 and APP13002.
48GF Score
Get the complete analysis for TPE:6838
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