Zai LabZLAB +0.76%64 Current Ratio is 2.40 as of Mar. 2026, which is 69% below its 10-year median of 7.78. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,416 Biotechnology companies, Zai Lab ranks worse than 63.35% 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. Zai Lab's current ratio for the quarter that ended in Mar. 2026 was 2.40.
Zai Lab has a current ratio of 2.40. It generally indicates good short-term financial strength.
The historical rank and industry rank for Zai Lab's Current Ratio or its related term are showing as below:
ZLAB'
s Current Ratio Range Over the Past 10 Years
Min: 2.4 Med: 7.78 Max: 19.11
Current: 2.4
During the past 11 years, Zai Lab's highest Current Ratio was 19.11. The lowest was 2.40. And the median was 7.78.
ZLAB's Current Ratio is ranked worse than 63.35% of 1416
companies
in the Biotechnology industry
Industry Median: 3.885
vs ZLAB: 2.40
Zai Lab (NAS:ZLAB) 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.
Zai Lab Current Ratio Related Terms
Zai Lab Current Ratio Historical Data
* Premium members only.
The historical data trend for Zai Lab'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.
ZLAB vs TYRA, TRVI, OCUL: Current Ratio Comparison
For the Biotechnology subindustry, Zai Lab'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.
Zai Lab Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Current Ratio distribution charts can be found below:
* The bar in red indicates where Zai Lab'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.
Zai Lab (ZLAB) has a Current Ratio of 2.40 as of Mar. 2026. This is 69% below median its historical median of 7.78. Over the past decade, Zai Lab's Current Ratio has ranged from 2.40 to 19.11. According to the industry distribution chart, Zai Lab ranks #897 out of 1416 companies in the Biotechnology industry, placing it in the top 63.3%.
Is Zai Lab's Current Ratio too high?
Zai Lab's current Current Ratio of 2.40 is 69% below median its 10-year median of 7.78. Over the past 10 years, this metric has ranged from a low of 2.40 to a high of 19.11. The Biotechnology industry median Current Ratio is 3.89. Zai Lab's value of 2.40 is 38.2% below this industry median. Based on the distribution chart, Zai Lab ranks #897 out of 1416 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Current Ratio compare to TYRA and TRVI?
According to the Biotechnology industry distribution chart, Zai Lab ranks #897 out of 1416 companies for Current Ratio. This places Zai Lab in the lower half of its industry. The industry median Current Ratio is 3.89. Zai Lab's value of 2.40 is 38.2% below this benchmark. Historically, Zai Lab's own Current Ratio has ranged from 2.40 to 19.11 over the past decade. While the company's 10-year median is 7.78 vs. the industry median of 3.89, Zai Lab 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 1,416 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. Zai Lab's current Current Ratio of 2.40 is 38.2% 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. Zai Lab's current Current Ratio is 2.40, which is 69% below median its own 10-year median of 7.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $18.52 — trading 38.9% below its estimated fair value. The current Current Ratio is 2.40, which is 69% below median its 10-year median of 7.78 and 38.2% below the Biotechnology industry median of 3.89. Zai Lab's overall GF Score™ is 64/100 with 8 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 Zai Lab (ZLAB), the current Current Ratio is 2.40 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 Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.52 is trading 38.9% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Current Ratio: 2.40 (69% below median its 10-year median of 7.78)
GF Value™: $30.30 vs. price of $18.52 (38.9% below fair value)
Industry Position: 38.2% below the Biotechnology median (#897 of 1416)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
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