AVITA Medical has a Cash Ratio of 6.75. 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 AVITA Medical's Cash Ratio or its related term are showing as below:
RCEL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.2 Med: 4.16 Max: 14.99
Current: 6.75
During the past 13 years, AVITA Medical's highest Cash Ratio was 14.99. The lowest was 0.20. And the median was 4.16.
RCEL's Cash Ratio is ranked better than 88.42% of 855
companies
in the Medical Devices & Instruments industry
Industry Median: 1.24
vs RCEL: 6.75
AVITA Medical Cash Ratio Historical Data
The historical data trend for AVITA Medical'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 AVITA Medical's Cash Ratio
For the Medical Devices subindustry, AVITA Medical'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.
AVITA Medical's Cash Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AVITA Medical's Cash Ratio distribution charts can be found below:
* The bar in red indicates where AVITA Medical's Cash Ratio falls into.
AVITA Medical Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
AVITA Medical'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.
AVITA Medical (NAS:RCEL) 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.
AVITA Medical Cash Ratio Related Terms
Thank you for viewing the detailed overview of AVITA Medical's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AVITA Medical (AVITA Medical) Business Description
Avita is a single product company. Its RECELL system is an innovative burn treatment device which creates Spray-on Skin from a small skin sample within 30 minutes, thus avoiding or reducing the need for skin grafts. It's approved for the treatment of adult patients in the U.S. with paediatric clinical trials and expanded indications in soft-tissue reconstruction and vitiligo underway. It is currently in roll-out across the approximately 136 U.S. burn centers. Despite having product approval in Australia, Europe, Canada, and China, Avita is not actively marketing in those territories and focussing instead on the U.S. region. However, it is expected to launch in Japan via distribution partner Cosmotec in second-half fiscal 2022. Avita is domiciled, and has its primary listing, in the U.S.
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