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. Amphastar Pharmaceuticals's current ratio for the quarter that ended in Dec. 2023 was 2.17.
Amphastar Pharmaceuticals has a current ratio of 2.17. It generally indicates good short-term financial strength.
The historical rank and industry rank for Amphastar Pharmaceuticals's Current Ratio or its related term are showing as below:
AMPH'
s Current Ratio Range Over the Past 10 Years
Min: 2.06 Med: 2.89 Max: 3.99
Current: 2.17
During the past 13 years, Amphastar Pharmaceuticals's highest Current Ratio was 3.99. The lowest was 2.06. And the median was 2.89.
AMPH's Current Ratio is ranked better than 57.99% of 1076
companies
in the Drug Manufacturers industry
Industry Median: 1.9
vs AMPH: 2.17
Amphastar Pharmaceuticals Current Ratio Historical Data
* 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 Amphastar Pharmaceuticals's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Amphastar Pharmaceuticals'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.
Amphastar Pharmaceuticals's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amphastar Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Amphastar Pharmaceuticals's Current Ratio falls into.
Amphastar Pharmaceuticals 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.
Amphastar Pharmaceuticals'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.
Amphastar Pharmaceuticals (NAS:AMPH) 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.
Amphastar Pharmaceuticals Current Ratio Related Terms
Thank you for viewing the detailed overview of Amphastar Pharmaceuticals's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Amphastar Pharmaceuticals (Amphastar Pharmaceuticals) Business Description
Amphastar Pharmaceuticals Inc is a biopharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the company sells insulin API products. The company's finished products are used in hospital or urgent care clinical settings and are contracted and distributed through group purchasing organizations and drug wholesalers. The company has two reportable segments finished pharmaceutical products and API products. Geographically the business presence of the firm is seen in the United States, China and France of which the U.S. accounts for the majority of the revenue.
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