Relay Therapeutics has a quick ratio of 20.73. It generally indicates good short-term financial strength.
The historical rank and industry rank for Relay Therapeutics's Quick Ratio or its related term are showing as below:
RLAY'
s Quick Ratio Range Over the Past 10 Years
Min: 12.36 Med: 24.74 Max: 61.78
Current: 20.73
During the past 6 years, Relay Therapeutics's highest Quick Ratio was 61.78. The lowest was 12.36. And the median was 24.74.
RLAY's Quick Ratio is ranked better than 93.56% of 1553
companies
in the Biotechnology industry
Industry Median: 3.49
vs RLAY: 20.73
Relay Therapeutics Quick Ratio Historical Data
The historical data trend for Relay 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 Relay Therapeutics's Quick Ratio
For the Biotechnology subindustry, Relay 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.
Relay Therapeutics's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Relay Therapeutics's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Relay Therapeutics's Quick Ratio falls into.
Relay 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.
Relay 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.
Relay Therapeutics (NAS:RLAY) 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.
Relay Therapeutics Quick Ratio Related Terms
Thank you for viewing the detailed overview of Relay Therapeutics's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Relay Therapeutics (Relay Therapeutics) Business Description
Relay Therapeutics Inc is a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies with the goal of bringing life-changing therapies to patients. the Dynamo platform integrates an array of leading-edge computational and experimental approaches designed to drug-protein targets that have previously been intractable or inadequately addressed. The company is advancing a pipeline of medicine candidates to address targets in precision oncology and genetic disease, including product candidates, RLY-4008, RLY-2608, and GDC-1971 (formerly known as RLY-1971).
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