Foghorn Therapeutics has a quick ratio of 4.06. It generally indicates good short-term financial strength.
The historical rank and industry rank for Foghorn Therapeutics's Quick Ratio or its related term are showing as below:
FHTX'
s Quick Ratio Range Over the Past 10 Years
Min: 1.33 Med: 6.4 Max: 11.68
Current: 4.06
During the past 6 years, Foghorn Therapeutics's highest Quick Ratio was 11.68. The lowest was 1.33. And the median was 6.40.
FHTX's Quick Ratio is ranked better than 53.97% of 1551
companies
in the Biotechnology industry
Industry Median: 3.53
vs FHTX: 4.06
Foghorn Therapeutics Quick Ratio Historical Data
The historical data trend for Foghorn Therapeutics's Quick 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 Foghorn Therapeutics's Quick Ratio
For the Biotechnology subindustry, Foghorn Therapeutics's Quick Ratio, along with its competitors' market caps and Quick 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.
Foghorn Therapeutics's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Foghorn Therapeutics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Foghorn Therapeutics's Quick Ratio falls into.
Foghorn Therapeutics Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Foghorn Therapeutics's Quick 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.
Foghorn Therapeutics (NAS:FHTX) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Foghorn Therapeutics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Foghorn Therapeutics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Foghorn Therapeutics (Foghorn Therapeutics) Business Description
Foghorn Therapeutics Inc is engaged in the discovery and development of a new class of medicines targeting genetically determined dependencies within the chromatin regulatory system. Its proprietary Gene Traffic Control platform gives an integrated, mechanistic understanding of how the various components of the chromatin regulatory system interact, allowing it to identify, validate and potentially drug targets within the system. The company is developing FHD-286, a selective, allosteric ATPase inhibitor, and FHD-609, a protein degrader, to treat hematologic cancers and solid tumors.
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