Aerovate Therapeutics (Aerovate Therapeutics) Quick Ratio : 6.65 (As of Mar. 2024)

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What is Aerovate Therapeutics Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Aerovate Therapeutics's quick ratio for the quarter that ended in Mar. 2024 was 6.65.

Aerovate Therapeutics has a quick ratio of 6.65. It generally indicates good short-term financial strength.

The historical rank and industry rank for Aerovate Therapeutics's Quick Ratio or its related term are showing as below:

AVTE' s Quick Ratio Range Over the Past 10 Years
Min: 2.64 Med: 11.48 Max: 68.37
Current: 6.65

During the past 5 years, Aerovate Therapeutics's highest Quick Ratio was 68.37. The lowest was 2.64. And the median was 11.48.

AVTE's Quick Ratio is ranked better than
70.54% of 1551 companies
in the Biotechnology industry
Industry Median: 3.53 vs AVTE: 6.65

Aerovate Therapeutics Quick Ratio Historical Data

The historical data trend for Aerovate Therapeutics's Quick 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.

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Aerovate Therapeutics Quick Ratio Chart

Aerovate Therapeutics Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Quick Ratio

5.35

2.64

68.37

16.90

7.04

Aerovate Therapeutics Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Quick Ratio	Get a 7-Day Free Trial													11.33	11.48	9.34	7.04	6.65

Competitive Comparison of Aerovate Therapeutics's Quick Ratio

For the Biotechnology subindustry, Aerovate Therapeutics's Quick Ratio, along with its competitors' market caps and Quick 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.

Aerovate Therapeutics's Quick Ratio Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Aerovate Therapeutics's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Aerovate Therapeutics's Quick Ratio falls into.

Aerovate Therapeutics Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Aerovate Therapeutics's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(124.232	-	0)	/	17.637
	=	7.04

Aerovate Therapeutics's Quick Ratio for the quarter that ended in Mar. 2024 is calculated as

Quick Ratio (Q: Mar. 2024 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(103.239	-	0)	/	15.518
	=	6.65

Aerovate Therapeutics (NAS:AVTE) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.

Aerovate Therapeutics Quick Ratio Related Terms

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Aerovate Therapeutics (Aerovate Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Aerovate Therapeutics Inc (NAS:AVTE) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

930 Winter Street, Suite M-500, Waltham, MA, USA, 02451

Website

https://www.aerovatetx.com

Aerovate Therapeutics Inc is a clinical-stage biopharmaceutical company focused on developing drugs that improve the lives of patients with rare cardiopulmonary disease. Its initial focus is on advancing AV-101, dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, a devastating disease impacting people in the United States and Europe.

Executives

Hunter Gillies	officer: Chief Medical Officer	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Ralph Niven	officer: Chief Development Officer	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Benjamin T Dake	officer: See Remarks	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Marinus Verwijs	officer: SENIOR VICE PRESIDENT, CMC	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Timothy P Noyes	director, officer: Chief Executive Officer	1365 MAIN STREET, WALTHAM MA 02451
Habib J Dable	director	C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Timothy Pigot	officer: Chief Commercial Officer	AEROVATE THERAPEUTICS, INC., 930 WINTER STREET, SUITE M-500, WALTHAM MA 02451
Donald J Santel	director	4362 24TH STREET, SAN FRANCISCO CA 94114
George A Eldridge	officer: See Remarks	C/O TARGANTA THERAPEUTICS CORPORATION, 222 THIRD STREET SUITE 2300, CAMBRIDGE MA 02142
Allison Dorval	director	C/O INSULET CORPORATION, 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
Cormorant Asset Management, Lp	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Maha Katabi	director, 10 percent owner	SOFINNOVA INVESTMENTS, 3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025
Ra Capital Healthcare Fund Lp	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Management, L.p.	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Peter Kolchinsky	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116