Dechra Pharmaceuticals has a Cash Ratio of 0.45. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Dechra Pharmaceuticals's Cash Ratio or its related term are showing as below:
LSE:DPH'
s Cash Ratio Range Over the Past 10 Years
Min: 0.45 Med: 0.76 Max: 1.66
Current: 0.45
During the past 13 years, Dechra Pharmaceuticals's highest Cash Ratio was 1.66. The lowest was 0.45. And the median was 0.76.
LSE:DPH's Cash Ratio is not ranked
in the Drug Manufacturers industry.
Industry Median: 0.575
vs LSE:DPH: 0.45
* 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 Dechra Pharmaceuticals's Cash Ratio
For the Drug Manufacturers - General subindustry, Dechra Pharmaceuticals's Cash Ratio, along with its competitors' market caps and Cash 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.
Dechra Pharmaceuticals's Cash Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dechra Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Dechra Pharmaceuticals's Cash Ratio falls into.
Dechra Pharmaceuticals Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Dechra Pharmaceuticals's Cash Ratio for the fiscal year that ended in Jun. 2023 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.
Dechra Pharmaceuticals (LSE:DPH) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Dechra Pharmaceuticals Cash Ratio Related Terms
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Dechra Pharmaceuticals (LSE:DPH) Business Description
Dechra Pharmaceuticals PLC is a major drug manufacturing company with a focus on veterinary pharmaceutical products. The company develops, manufactures, and markets its products exclusively for veterinarians globally. Dechra is structured along three segments, including being European Pharmaceuticals, North American Pharmaceuticals, and Pharmaceuticals Research and Development. The vast majority of Dechra's revenue is generated in Europe, followed by the U.S. Dechra derives most of its revenue through its Companion Animal Product category, followed by food-producing animal products.
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