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. Sandoz Group AG's current ratio for the quarter that ended in Jun. 2024 was 1.22.
Sandoz Group AG has a current ratio of 1.22. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sandoz Group AG's Current Ratio or its related term are showing as below:
LTS:0SAN'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.22 Max: 1.33
Current: 1.22
During the past 2 years, Sandoz Group AG's highest Current Ratio was 1.33. The lowest was 0.76. And the median was 1.22.
LTS:0SAN's Current Ratio is ranked worse than 73.26% of 1036
companies
in the Drug Manufacturers industry
Industry Median: 1.97
vs LTS:0SAN: 1.22
Sandoz Group AG Current Ratio Historical Data
The historical data trend for Sandoz Group AG'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.
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Sandoz Group AG Current Ratio Chart
Sandoz Group AG Annual Data
Trend
Dec22
Dec23
Current Ratio
0.76
1.33
Sandoz Group AG Semi-Annual Data
Dec22
Jun23
Dec23
Jun24
Current Ratio
0.76
-
1.33
1.22
Competitive Comparison of Sandoz Group AG's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG'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.
Sandoz Group AG's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sandoz Group AG's Current Ratio falls into.
Sandoz Group AG 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.
Sandoz Group AG'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.
Sandoz Group AG (LTS:0SAN) 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.
Sandoz Group AG Current Ratio Related Terms
Thank you for viewing the detailed overview of Sandoz Group AG's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $9 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006 as well as the first US biosimilar, Zarxio, in 2015. It currently has eight commercialized biosimilars in a number of markets and has over 20 assets in its pipeline.
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