Zai LabZLAB +0.76%64 Quick Ratio is 2.19 as of Mar. 2026, which is 71% below its 10-year median of 7.68. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,416 Biotechnology companies, Zai Lab ranks worse than 63.21% on this metric.
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. Zai Lab's quick ratio for the quarter that ended in Mar. 2026 was 2.19.
Zai Lab has a quick ratio of 2.19. It generally indicates good short-term financial strength.
The historical rank and industry rank for Zai Lab's Quick Ratio or its related term are showing as below:
ZLAB'
s Quick Ratio Range Over the Past 10 Years
Min: 2.19 Med: 7.68 Max: 19.11
Current: 2.19
During the past 11 years, Zai Lab's highest Quick Ratio was 19.11. The lowest was 2.19. And the median was 7.68.
ZLAB's Quick Ratio is ranked worse than 63.21% of 1416
companies
in the Biotechnology industry
Industry Median: 3.6
vs ZLAB: 2.19
Zai Lab (NAS:ZLAB) 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.
Zai Lab Quick Ratio Related Terms
Zai Lab Quick Ratio Historical Data
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The historical data trend for Zai Lab'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, Zai Lab'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.
Zai Lab Quick Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Zai Lab's Quick Ratio falls into.
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.
Zai Lab's Quick Ratio for the fiscal year that ended in Dec. 2025 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.
Zai Lab (ZLAB) has a Quick Ratio of 2.19 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Zai Lab and its competitors. This is 71% below median its historical median of 7.68. Over the past decade, Zai Lab's Quick Ratio has ranged from 2.19 to 19.11. According to the industry distribution chart, Zai Lab ranks #895 out of 1416 companies in the Biotechnology industry, placing it in the top 63.2%.
Is Zai Lab's Quick Ratio too high?
Zai Lab's current Quick Ratio of 2.19 is 71% below median its 10-year median of 7.68. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 19.11. The Biotechnology industry median Quick Ratio is 3.60. Zai Lab's value of 2.19 is 39.2% below this industry median. Based on the distribution chart, Zai Lab ranks #895 out of 1416 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Quick Ratio compare to TYRA and TRVI?
According to the Biotechnology industry distribution chart, Zai Lab ranks #895 out of 1416 companies for Quick Ratio. This places Zai Lab in the lower half of its industry. The industry median Quick Ratio is 3.60. Zai Lab's value of 2.19 is 39.2% below this benchmark. Historically, Zai Lab's own Quick Ratio has ranged from 2.19 to 19.11 over the past decade. While the company's 10-year median is 7.68 vs. the industry median of 3.60, Zai Lab has consistently been below 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. Zai Lab's current Quick Ratio of 2.19 is 39.2% below 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 Zai Lab 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. Zai Lab's current Quick Ratio is 2.19, which is 71% below median its own 10-year median of 7.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $18.52 — trading 38.9% below its estimated fair value. The current Quick Ratio is 2.19, which is 71% below median its 10-year median of 7.68 and 39.2% below the Biotechnology industry median of 3.60. Zai Lab's overall GF Score™ is 64/100 with 8 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 Zai Lab (ZLAB), the current Quick Ratio is 2.19 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 Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.52 is trading 38.9% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Quick Ratio: 2.19 (71% below median its 10-year median of 7.68)
GF Value™: $30.30 vs. price of $18.52 (38.9% below fair value)
Industry Position: 39.2% below the Biotechnology median (#895 of 1416)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
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