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. OptiBiotix Health's current ratio for the quarter that ended in Jun. 2023 was 3.59.
OptiBiotix Health has a current ratio of 3.59. 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 OptiBiotix Health's Current Ratio or its related term are showing as below:
LSE:OPTI'
s Current Ratio Range Over the Past 10 Years
Min: 3.59 Med: 8 Max: 48.92
Current: 3.59
During the past 12 years, OptiBiotix Health's highest Current Ratio was 48.92. The lowest was 3.59. And the median was 8.00.
LSE:OPTI's Current Ratio is ranked worse than 51.8% of 1556
companies
in the Biotechnology industry
Industry Median: 3.795
vs LSE:OPTI: 3.59
OptiBiotix Health Current Ratio Historical Data
The historical data trend for OptiBiotix Health'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.
* Premium members only.
OptiBiotix Health Annual Data
Trend
Jul10
Jul12
Nov14
Nov15
Nov16
Nov17
Nov18
Dec20
Dec21
Dec22
Current Ratio
6.47
3.90
3.86
6.40
6.68
OptiBiotix Health Semi-Annual Data
Jul12
Jan13
May14
Nov14
May15
Nov15
May16
Nov16
May17
Nov17
May18
Nov18
May19
Jun20
Dec20
Jun21
Dec21
Jun22
Dec22
Jun23
Current Ratio
3.86
6.40
8.39
6.68
3.59
Competitive Comparison
For the Biotechnology subindustry, OptiBiotix Health'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.
OptiBiotix Health Current Ratio Distribution
For the Biotechnology industry and Healthcare sector, OptiBiotix Health's Current Ratio distribution charts can be found below:
* The bar in red indicates where OptiBiotix Health's Current Ratio falls into.
OptiBiotix Health 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.
OptiBiotix Health'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.
OptiBiotix Health (LSE:OPTI) 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.
OptiBiotix Health Current Ratio Related Terms
Thank you for viewing the detailed overview of OptiBiotix Health's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
OptiBiotix Health PLC is engaged in the field of healthcare. As a life science company, its prime focus lies in researching the area of biotechnology. Its activities include the identification of microbial strains, compounds, and formulations for use in food ingredients, supplements, and active compounds that can impact human physiology, deriving potential health benefits. The company derives majority of the revenue from the sale of Functional Fibres. The company markets its products in the United Kingdom under trademark names such as OptiBiotix, SweetBiotix, and SkinBioTherapeutics.
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