The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. TELA Bio's Cash Ratio for the quarter that ended in Dec. 2023 was 2.75.
TELA Bio has a Cash Ratio of 2.75. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for TELA Bio's Cash Ratio or its related term are showing as below:
TELA'
s Cash Ratio Range Over the Past 10 Years
Min: 1.81 Med: 3.39 Max: 11.26
Current: 2.75
During the past 7 years, TELA Bio's highest Cash Ratio was 11.26. The lowest was 1.81. And the median was 3.39.
TELA's Cash Ratio is ranked better than 71.14% of 856
companies
in the Medical Devices & Instruments industry
Industry Median: 1.25
vs TELA: 2.75
TELA Bio Cash Ratio Historical Data
The historical data trend for TELA Bio's Cash 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 Medical Devices subindustry, TELA Bio'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.
TELA Bio Cash Ratio Distribution
For the Medical Devices & Instruments industry and Healthcare sector, TELA Bio's Cash Ratio distribution charts can be found below:
* The bar in red indicates where TELA Bio's Cash Ratio falls into.
TELA Bio Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
TELA Bio's Cash Ratio for the fiscal year that ended in Dec. 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.
TELA Bio (NAS:TELA) 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.
TELA Bio Cash Ratio Related Terms
Thank you for viewing the detailed overview of TELA Bio's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
TELA Bio Inc is a United States-based medical technology company. The company is involved in developing and marketing of tissue reinforcement materials to address unmet needs in soft tissue reconstruction. Its reinforced tissue matrices called OviTex improve the clinical outcomes and reduce costs of care in hernia repair, abdominal wall reconstruction and plastic and reconstructive surgery.
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