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. Kala Bio's current ratio for the quarter that ended in Dec. 2023 was 6.33.
Kala Bio has a current ratio of 6.33. 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 Kala Bio's Current Ratio or its related term are showing as below:
KALA'
s Current Ratio Range Over the Past 10 Years
Min: 1.38 Med: 6.33 Max: 10.41
Current: 6.33
During the past 9 years, Kala Bio's highest Current Ratio was 10.41. The lowest was 1.38. And the median was 6.33.
KALA's Current Ratio is ranked better than 68.83% of 1556
companies
in the Biotechnology industry
Industry Median: 3.71
vs KALA: 6.33
Kala Bio Current Ratio Historical Data
The historical data trend for Kala Bio'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 Kala Bio's Current Ratio
For the Biotechnology subindustry, Kala Bio'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.
Kala Bio's Current Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Kala Bio's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kala Bio's Current Ratio falls into.
Kala Bio 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.
Kala Bio'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.
Kala Bio (NAS:KALA) 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.
Kala Bio Current Ratio Related Terms
Thank you for viewing the detailed overview of Kala Bio's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Kala Bio Inc is a biopharmaceutical company. The company is a clinical-stage biopharmaceutical company dedicated to researching, developing, and commercializing innovative therapies for rare and severe eye diseases. KALA's lead product candidate, KPI-012, is a human MSC-S, which contains numerous human-derived biofactors, such as growth factors, protease inhibitors, matrix proteins, and neurotrophic factors that can potentially correct the impaired corneal healing that is an underlying etiology of multiple severe ocular diseases. Its MSC-S platform is for retinal degenerative diseases, such as Retinitis Pigmentosa and Stargardt Disease.
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