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. United Therapeutics's Cash Ratio for the quarter that ended in Dec. 2023 was 3.72.
United Therapeutics has a Cash Ratio of 3.72. 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 United Therapeutics's Cash Ratio or its related term are showing as below:
UTHR'
s Cash Ratio Range Over the Past 10 Years
Min: 1.38 Med: 3.47 Max: 8.27
Current: 3.72
During the past 13 years, United Therapeutics's highest Cash Ratio was 8.27. The lowest was 1.38. And the median was 3.47.
UTHR's Cash Ratio is ranked better than 55.77% of 1524
companies
in the Biotechnology industry
Industry Median: 2.945
vs UTHR: 3.72
United Therapeutics Cash Ratio Historical Data
The historical data trend for United Therapeutics'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.
Competitive Comparison of United Therapeutics's Cash Ratio
For the Biotechnology subindustry, United Therapeutics'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.
United Therapeutics's Cash Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, United Therapeutics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where United Therapeutics's Cash Ratio falls into.
United Therapeutics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
United Therapeutics'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.
United Therapeutics (NAS:UTHR) 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.
United Therapeutics Cash Ratio Related Terms
Thank you for viewing the detailed overview of United Therapeutics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
United Therapeutics (United Therapeutics) Business Description
United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
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