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. InterMune's quick ratio for the quarter that ended in Jun. 2014 was 6.87.
InterMune has a quick ratio of 6.87. It generally indicates good short-term financial strength.
The historical rank and industry rank for InterMune's Quick Ratio or its related term are showing as below:
FRA:IUX'
s Quick Ratio Range Over the Past 10 Years
Min: 1.07 Med: 6.86 Max: 52.34
Current: 6.87
During the past 13 years, InterMune's highest Quick Ratio was 52.34. The lowest was 1.07. And the median was 6.86.
FRA:IUX's Quick Ratio is not ranked
in the Biotechnology industry.
Industry Median: 3.58
vs FRA:IUX: 6.87
InterMune Quick Ratio Historical Data
The historical data trend for InterMune'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.
For the Biotechnology subindustry, InterMune'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.
InterMune's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, InterMune's Quick Ratio distribution charts can be found below:
* The bar in red indicates where InterMune's Quick Ratio falls into.
InterMune 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.
InterMune's Quick Ratio for the fiscal year that ended in Dec. 2013 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.
InterMune (FRA:IUX) 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.
InterMune Quick Ratio Related Terms
Thank you for viewing the detailed overview of InterMune's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
InterMune, Inc was incorporated in California in 1998 and reincorporated in Delaware in 2000 in connection with its initial public offering. InterMune is a biotechnology company focused on the research, development and commercialization of therapies in pulmonology and orphan fibrotic diseases. The Company's business is mainly focused on the development and commercialization of therapies within the specialized areas of pulmonology and orphan fibrotic diseases. It has an advanced-stage product candidate in pulmonology, pirfenidone that was granted marketing authorization effective February 2011 in all 27 member countries of the European Union for the treatment of adults with mild to moderate idiopathic pulmonary fibrosis. Pirfenidone is an orally active, small molecule compound under development for the treatment of idiopathic pulmonary fibrosis. Pirfenidone, a treatment for IPF, a progressive and fatal lung disease, has completed the global Phase 3 CAPACITY clinical development program. Actimmune is currently approved in the United States for the treatment of chronic granulomatous disease and severe, malignant osteopetrosis. Actimmune is also approved for commercial use in both indications in numerous other countries. CGD is a life-threatening congenital disorder that causes patients, mainly children, to be vulnerable to severe, recurrent bacterial and fungal infections. This results in frequent and prolonged hospitalizations and commonly results in death. Severe, malignant osteopetrosis is a life-threatening, congenital disorder that mainly affects children. This disease results in increased susceptibility to infection and an overgrowth of bony structures that might lead to blindness and/or deafness. The FDA and comparable regulatory agencies in state and local jurisdictions and in foreign countries impose substantial requirements upon the clinical development, manufacture and marketing of pharmaceutical products.
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