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. Forty Seven's quick ratio for the quarter that ended in Dec. 2019 was 14.81.
Forty Seven has a quick ratio of 14.81. It generally indicates good short-term financial strength.
The historical rank and industry rank for Forty Seven's Quick Ratio or its related term are showing as below:
FTSV's Quick Ratio is not ranked *
in the Biotechnology industry.
Industry Median: 3.57 * Ranked among companies with meaningful Quick Ratio only.
Forty Seven Quick Ratio Historical Data
The historical data trend for Forty Seven'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.
Competitive Comparison of Forty Seven's Quick Ratio
For the Biotechnology subindustry, Forty Seven'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.
Forty Seven's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Forty Seven's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Forty Seven's Quick Ratio falls into.
Forty Seven 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.
Forty Seven's Quick 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.
Forty Seven (NAS:FTSV) 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.
Forty Seven Quick Ratio Related Terms
Thank you for viewing the detailed overview of Forty Seven's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Forty Seven Inc is a clinical-stage immuno-oncology company. It is engaged in developing novel checkpoint therapies to activate macrophages and help the patients in their fight against cancer. It founded that blocking CD47, a key signaling molecule that is overexpressed on cancer cells renders tumors susceptible to macrophages. It is also preparing investigational compounds into clinical testing. FSI-174, an anti-cKIT antibody, is being developed in combination with magrolimab as a novel, all-antibody conditioning regimen to address the limitations of current stem cell transplantation conditioning regimens. FSI-189, an anti-SIRP-alpha antibody, is being developed for the treatment of cancer, and certain non-oncology conditions, including transplantation conditioning.
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