Theratechnologies (TSX:TH) Cash Ratio : 0.76 (As of Feb. 2024)

Theratechnologies Cash Ratio Chart

Theratechnologies Annual Data
	Trend	Nov14	Nov15	Nov16	Nov17	Nov18	Nov19	Nov20	Nov21	Nov22	Nov23
Cash Ratio		Get a 7-Day Free Trial					1.09	0.50	0.90	0.29	0.85

Theratechnologies Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Cash Ratio	Get a 7-Day Free Trial															0.40	0.36	0.23	0.85	0.76

Competitive Comparison of Theratechnologies's Cash Ratio

For the Biotechnology subindustry, Theratechnologies'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.

Theratechnologies's Cash Ratio Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Theratechnologies's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Theratechnologies's Cash Ratio falls into.

Theratechnologies Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

Theratechnologies's Cash Ratio for the fiscal year that ended in Nov. 2023 is calculated as:

Theratechnologies's Cash Ratio for the quarter that ended in Feb. 2024 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.

Theratechnologies  (TSX:TH) 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.

Theratechnologies Cash Ratio Related Terms

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Theratechnologies (TSX:TH) Business Description