Praxis Precision MedicinesPRAX -0.02%38 Quick Ratio is 15.88 as of Mar. 2026, which is 124% above its 10-year median of 7.08. GuruFocus rates PRAX with a GF Score™ of 38/100 and a GF Value™ of $31.07 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,416 Biotechnology companies, Praxis Precision Medicines ranks better than 88.21% on this metric.
Praxis Precision Medicines has a quick ratio of 15.88. It generally indicates good short-term financial strength.
The historical rank and industry rank for Praxis Precision Medicines's Quick Ratio or its related term are showing as below:
PRAX'
s Quick Ratio Range Over the Past 10 Years
Min: 2.51 Med: 7.08 Max: 22.08
Current: 15.88
During the past 8 years, Praxis Precision Medicines's highest Quick Ratio was 22.08. The lowest was 2.51. And the median was 7.08.
PRAX's Quick Ratio is ranked better than 88.21% of 1416
companies
in the Biotechnology industry
Industry Median: 3.6
vs PRAX: 15.88
Praxis Precision Medicines (NAS:PRAX) 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.
Praxis Precision Medicines Quick Ratio Related Terms
Praxis Precision Medicines Quick Ratio Historical Data
* 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, Praxis Precision Medicines'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.
Praxis Precision Medicines Quick Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Praxis Precision Medicines's Quick Ratio falls into.
Praxis Precision Medicines 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.
* 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.
Praxis Precision Medicines (PRAX) has a Quick Ratio of 15.88 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Praxis Precision Medicines and its competitors. This is 124% above median its historical median of 7.08. Over the past decade, Praxis Precision Medicines' Quick Ratio has ranged from 2.51 to 22.08. According to the industry distribution chart, Praxis Precision Medicines ranks #167 out of 1416 companies in the Biotechnology industry, placing it in the top 11.8%.
Is Praxis Precision Medicines' Quick Ratio too high?
Praxis Precision Medicines' current Quick Ratio of 15.88 is 124% above median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 2.51 to a high of 22.08. The Biotechnology industry median Quick Ratio is 3.60. Praxis Precision Medicines' value of 15.88 is 341.1% above this industry median. Based on the distribution chart, Praxis Precision Medicines ranks #167 out of 1416 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Praxis Precision Medicines has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Praxis Precision Medicines' Quick Ratio compare to KRYS and CYTK?
According to the Biotechnology industry distribution chart, Praxis Precision Medicines ranks #167 out of 1416 companies for Quick Ratio. This places Praxis Precision Medicines in the top 12% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 3.60. Praxis Precision Medicines' value of 15.88 is 341.1% above this benchmark. Historically, Praxis Precision Medicines' own Quick Ratio has ranged from 2.51 to 22.08 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 3.60, Praxis Precision Medicines has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Biotechnology company?
The median Quick Ratio among Biotechnology companies is 3.60, based on 1,416 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Praxis Precision Medicines's current Quick Ratio of 15.88 is 341.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Praxis Precision Medicines and its competitors. For the Biotechnology industry, the median Quick Ratio is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Praxis Precision Medicines's current Quick Ratio is 15.88, which is 124% above median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praxis Precision Medicines stock overvalued right now?
Based on GuruFocus' analysis, Praxis Precision Medicines (PRAX) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.07, compared to a current price of $327.79 — trading 955% above its estimated fair value. The current Quick Ratio is 15.88, which is 124% above median its 10-year median of 7.08 and 341.1% above the Biotechnology industry median of 3.60. Praxis Precision Medicines' overall GF Score™ is 38/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Praxis Precision Medicines (PRAX), the current Quick Ratio is 15.88 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Praxis Precision Medicines (PRAX) Overvalued in 2026?
Based on GuruFocus' analysis, Praxis Precision Medicines stock appears to be overvalued.
The current stock price of $327.79 is trading 955% above its estimated GF Value™ of $31.07.
GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.
Key valuation signals for PRAX:
Quick Ratio: 15.88 (124% above median its 10-year median of 7.08)
GF Value™: $31.07 vs. price of $327.79 (955% above fair value)
Industry Position: 341.1% above the Biotechnology median (#167 of 1416)
No single metric tells the full story. See the PRAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praxis Precision Medicines Inc is a clinical-stage biopharmaceutical company. It is engaged in translating genetic insights into the development of therapies for patients affected by central nervous system disorders characterized by a neuronal excitation-inhibition imbalance. The company applies genetic insights to the discovery and development of therapies for neurological disorders through two proprietary platforms: Cerebrum and Solidus. It has established a diversified, multimodal CNS portfolio with four clinical-stage product candidates across movement disorders and epilepsy, which include Ulixacaltamide, Relutrigine, Vormatrigine, and Elsunersen. The firm operates in only one segment and is focused on discovering and developing therapies for CNS disorders.
38GF Score
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