The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Sierra Oncology's quick ratio for the quarter that ended in Mar. 2022 was 21.27.
Sierra Oncology has a quick ratio of 21.27. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sierra Oncology's Quick Ratio or its related term are showing as below:
SRRA'
s Quick Ratio Range Over the Past 10 Years
Min: 2.32 Med: 13.88 Max: 41.73
Current: 21.27
During the past 9 years, Sierra Oncology's highest Quick Ratio was 41.73. The lowest was 2.32. And the median was 13.88.
SRRA's Quick Ratio is not ranked
in the Biotechnology industry.
Industry Median: 3.485
vs SRRA: 21.27
Sierra Oncology Quick Ratio Historical Data
The historical data trend for Sierra Oncology'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 Sierra Oncology's Quick Ratio
For the Biotechnology subindustry, Sierra Oncology'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.
Sierra Oncology's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sierra Oncology's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Sierra Oncology's Quick Ratio falls into.
Sierra Oncology 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.
Sierra Oncology's Quick Ratio for the fiscal year that ended in Dec. 2021 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.
Sierra Oncology (NAS:SRRA) 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.
Sierra Oncology Quick Ratio Related Terms
Thank you for viewing the detailed overview of Sierra Oncology's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sierra Oncology (Sierra Oncology) Business Description
Sierra Oncology Inc is a clinical-stage drug development company. It focuses on the research, development, and commercialization of DNA Damage Response (DDR) therapeutics for the treatment of patients with cancer in the United States and internationally. The company's lead drug candidate is SRA737, an orally bioavailable small molecule inhibitor of Checkpoint kinase 1, which is in Phase 1 clinical trial to treat patients with advanced cancer. In addition, it also engaged in developing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase that is in the preclinical development stage.
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