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. Neos Therapeutics's current ratio for the quarter that ended in Sep. 2020 was 0.66.
Neos Therapeutics has a current ratio of 0.66. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Neos Therapeutics has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Neos Therapeutics's Current Ratio or its related term are showing as below:
NEOS'
s Current Ratio Range Over the Past 10 Years
Min: 0.66 Med: 2.42 Max: 8.04
Current: 0.66
During the past 7 years, Neos Therapeutics's highest Current Ratio was 8.04. The lowest was 0.66. And the median was 2.42.
NEOS's Current Ratio is not ranked
in the Drug Manufacturers industry.
Industry Median: 1.87
vs NEOS: 0.66
Neos Therapeutics Current Ratio Historical Data
The historical data trend for Neos Therapeutics'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 Neos Therapeutics's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Neos Therapeutics'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.
Neos Therapeutics's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neos Therapeutics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Neos Therapeutics's Current Ratio falls into.
Neos Therapeutics 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.
Neos Therapeutics's Current Ratio for the fiscal year that ended in Dec. 2019 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.
Neos Therapeutics (NAS:NEOS) 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.
Neos Therapeutics Current Ratio Related Terms
Thank you for viewing the detailed overview of Neos Therapeutics's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Neos Therapeutics (Neos Therapeutics) Business Description
Neos Therapeutics Inc is a pharmaceutical company, engaged in the development, manufacture, and commercialization of products for the treatment of attention deficit hyperactivity disorder (ADHD) using its drug delivery technologies. The product portfolio of the company includes Methylphenidate XR-ODT and Amphetamine XR oral suspension commonly prescribed medicine for the treatment of ADHD. In addition, it also manufactures and markets generic Tussionex, a hydrocodone polistirex and chlorpheniramine polistirex XR liquid suspension product indicated for the relief of cough. Geographically, it operates through the United States and derives revenue through the sale of products.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NEOS has been successfully added to your 