The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Silk Road Medical's current ratio for the quarter that ended in Mar. 2024 was 11.05.
Silk Road Medical has a current ratio of 11.05. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Silk Road Medical's Current Ratio or its related term are showing as below:
SILK'
s Current Ratio Range Over the Past 10 Years
Min: 2.69 Med: 9.04 Max: 15.5
Current: 11.05
During the past 7 years, Silk Road Medical's highest Current Ratio was 15.50. The lowest was 2.69. And the median was 9.04.
SILK's Current Ratio is ranked better than 92.26% of 866
companies
in the Medical Devices & Instruments industry
Industry Median: 2.725
vs SILK: 11.05
Silk Road Medical Current Ratio Historical Data
The historical data trend for Silk Road Medical's Current 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 Silk Road Medical's Current Ratio
For the Medical Devices subindustry, Silk Road Medical's Current Ratio, along with its competitors' market caps and Current 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.
Silk Road Medical's Current Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Silk Road Medical's Current Ratio distribution charts can be found below:
* The bar in red indicates where Silk Road Medical's Current Ratio falls into.
Silk Road Medical Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Silk Road Medical's Current 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.
Silk Road Medical (NAS:SILK) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Silk Road Medical Current Ratio Related Terms
Thank you for viewing the detailed overview of Silk Road Medical's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Silk Road Medical (Silk Road Medical) Business Description
Silk Road Medical Inc is a medical device company focused on reducing the risk of stroke and its devastating impact. The company has a new approach for the treatment of carotid artery disease called transcarotid artery revascularization, or TCAR, which it seeks to establish as the standard of care. TCAR relies on two novel concepts - minimally-invasive direct carotid access in the neck and high-rate blood flow reversal during the procedure to protect the brain - and combines novel endovascular techniques with fundamental surgical principles. TCAR using its portfolio of products has been clinically demonstrated to reduce the upfront morbidity and mortality risks commonly associated with carotid endarterectomy while maintaining a reduction in long-term stroke risk.
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