Nippon Shinyaku CoTSE:4516 -2.17%90 Current Ratio is 4.35 as of Mar. 2026, which is 1% below its 10-year median of 4.38. GuruFocus rates TSE:4516 with a GF Score™ of 90/100 and a GF Value™ of 円4,785.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 995 Drug Manufacturers companies, Nippon Shinyaku Co ranks better than 81.21% 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. Nippon Shinyaku Co's current ratio for the quarter that ended in Mar. 2026 was 4.35.
Nippon Shinyaku Co has a current ratio of 4.35. 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 Nippon Shinyaku Co's Current Ratio or its related term are showing as below:
TSE:4516'
s Current Ratio Range Over the Past 10 Years
Min: 3.66 Med: 4.38 Max: 4.94
Current: 4.35
During the past 13 years, Nippon Shinyaku Co's highest Current Ratio was 4.94. The lowest was 3.66. And the median was 4.38.
TSE:4516's Current Ratio is ranked better than 81.21% of 995
companies
in the Drug Manufacturers industry
Industry Median: 2
vs TSE:4516: 4.35
Nippon Shinyaku Co (TSE:4516) 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.
Nippon Shinyaku Co Current Ratio Related Terms
Nippon Shinyaku Co Current Ratio Historical Data
* Premium members only.
The historical data trend for Nippon Shinyaku Co'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Nippon Shinyaku Co'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.
Nippon Shinyaku Co Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Shinyaku Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Nippon Shinyaku Co'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.
Nippon Shinyaku Co (TSE:4516) has a Current Ratio of 4.35 as of Mar. 2026. This is near median its historical median of 4.38. Over the past decade, Nippon Shinyaku Co's Current Ratio has ranged from 3.66 to 4.94. According to the industry distribution chart, Nippon Shinyaku Co ranks #187 out of 995 companies in the Drug Manufacturers industry, placing it in the top 18.8%.
Is Nippon Shinyaku Co's Current Ratio too high?
Nippon Shinyaku Co's current Current Ratio of 4.35 is near median its 10-year median of 4.38. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 4.94. The Drug Manufacturers industry median Current Ratio is 2.00. Nippon Shinyaku Co's value of 4.35 is 117.5% above this industry median. Based on the distribution chart, Nippon Shinyaku Co ranks #187 out of 995 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Shinyaku Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shinyaku Co's Current Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Nippon Shinyaku Co ranks #187 out of 995 companies for Current Ratio. This places Nippon Shinyaku Co in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.00. Nippon Shinyaku Co's value of 4.35 is 117.5% above this benchmark. Historically, Nippon Shinyaku Co's own Current Ratio has ranged from 3.66 to 4.94 over the past decade. While the company's 10-year median is 4.38 vs. the industry median of 2.00, Nippon Shinyaku Co 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 Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 995 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. Nippon Shinyaku Co's current Current Ratio of 4.35 is 117.5% 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 Drug Manufacturers industry, the median Current Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shinyaku Co's current Current Ratio is 4.35, which is near median its own 10-year median of 4.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shinyaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shinyaku Co (TSE:4516) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,785.64, compared to a current price of 円4,016.00 — trading 16.1% below its estimated fair value. The current Current Ratio is 4.35, which is near median its 10-year median of 4.38 and 117.5% above the Drug Manufacturers industry median of 2.00. Nippon Shinyaku Co's overall GF Score™ is 90/100 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 Nippon Shinyaku Co (TSE:4516), the current Current Ratio is 4.35 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 Nippon Shinyaku Co (TSE:4516) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shinyaku Co stock appears to be undervalued.
The current stock price of 円4,016.00 is trading 16.1% below its estimated GF Value™ of 円4,785.64.
GuruFocus considers Nippon Shinyaku Co to be Modestly Undervalued.
Key valuation signals for TSE:4516:
Current Ratio: 4.35 (near median its 10-year median of 4.38)
GF Value™: 円4,785.64 vs. price of 円4,016.00 (16.1% below fair value)
Industry Position: 117.5% above the Drug Manufacturers median (#187 of 995)
No single metric tells the full story. See the TSE:4516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shinyaku Co Ltd is engaged in the pharmaceuticals and functional food businesses. The Pharmaceuticals Business develops and sells treatments for urological disorders, blood cancer, rare and intractable diseases, and gynecological conditions. The Functional Food Business produces and sells health food ingredients, quality-stabilizing preservatives, protein preparations, and supplements. It generates the majority of its revenue from the Pharmaceuticals segment.
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