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. Redhill Biopharma's current ratio for the quarter that ended in Jun. 2023 was 0.96.
Redhill Biopharma has a current ratio of 0.96. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Redhill Biopharma 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 Redhill Biopharma's Current Ratio or its related term are showing as below:
RDHL'
s Current Ratio Range Over the Past 10 Years
Min: 0.44 Med: 4.69 Max: 15.13
Current: 0.84
During the past 13 years, Redhill Biopharma's highest Current Ratio was 15.13. The lowest was 0.44. And the median was 4.69.
RDHL's Current Ratio is ranked worse than 83.64% of 1076
companies
in the Drug Manufacturers industry
Industry Median: 1.89
vs RDHL: 0.84
Redhill Biopharma Current Ratio Historical Data
The historical data trend for Redhill Biopharma'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 Redhill Biopharma's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Redhill Biopharma'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.
Redhill Biopharma's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Redhill Biopharma's Current Ratio distribution charts can be found below:
* The bar in red indicates where Redhill Biopharma's Current Ratio falls into.
Redhill Biopharma 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.
Redhill Biopharma's Current Ratio for the fiscal year that ended in Dec. 2023 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.
Redhill Biopharma (NAS:RDHL) 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.
Redhill Biopharma Current Ratio Related Terms
Thank you for viewing the detailed overview of Redhill Biopharma's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Redhill Biopharma (Redhill Biopharma) Business Description
Redhill Biopharma Ltd is a specialty biopharmaceutical company focused on gastrointestinal diseases. The company promotes gastrointestinal drugs, including Movantik for opioid-induced constipation in adults, Talicia for the treatment of Helicobacter pylori infection in adults, and Aemcolo for the treatment of travelers' diarrhea in adults. Its key clinical late-stage development programs include RHB-104 for Crohn's disease; RHB-204, for pulmonary nontuberculous mycobacteria infections; RHB-102 (Bekinda) with positive results from a first Phase 3 study for acute gastroenteritis and gastritis; Opaganib (Yeliva); RHB-106, an encapsulated bowel preparation and RHB-107, a Phase 2-stage serine protease inhibitor targeting cancer and inflammatory gastrointestinal diseases.
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