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. Burning Rock Biotech's current ratio for the quarter that ended in Sep. 2023 was 3.28.
Burning Rock Biotech has a current ratio of 3.28. 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 Burning Rock Biotech's Current Ratio or its related term are showing as below:
BNR'
s Current Ratio Range Over the Past 10 Years
Min: 1.03 Med: 4.3 Max: 12.46
Current: 3.28
During the past 6 years, Burning Rock Biotech's highest Current Ratio was 12.46. The lowest was 1.03. And the median was 4.30.
BNR's Current Ratio is ranked better than 67.65% of 238
companies
in the Medical Diagnostics & Research industry
Industry Median: 2.245
vs BNR: 3.28
Burning Rock Biotech Current Ratio Historical Data
The historical data trend for Burning Rock Biotech'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.
Competitive Comparison of Burning Rock Biotech's Current Ratio
For the Diagnostics & Research subindustry, Burning Rock Biotech'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.
Burning Rock Biotech's Current Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Burning Rock Biotech's Current Ratio distribution charts can be found below:
* The bar in red indicates where Burning Rock Biotech's Current Ratio falls into.
Burning Rock Biotech 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.
Burning Rock Biotech's Current Ratio for the fiscal year that ended in Dec. 2022 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.
Burning Rock Biotech (NAS:BNR) 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.
Burning Rock Biotech Current Ratio Related Terms
Thank you for viewing the detailed overview of Burning Rock Biotech's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Burning Rock Biotech (Burning Rock Biotech) Business Description
Burning Rock Biotech Ltd is a cancer diagnostics company. Its products include OncoScreen Plus and ColonCore. The company has developed various cancer detection products, involving tumor targeting, differentiation of benign and malignant tumors, monitoring of small residual lesions, prediction of tumor recurrence progress, and detection of tumor sensitivity. It offers 12 NGS-based cancer therapy selection tests comprising a broad range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer, using both tissue and liquid biopsy samples.
Burning Rock Biotech (Burning Rock Biotech) Headlines
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