Healthcare Stocks That Can Easily Pay Liabilities

The following companies in the Healthcare sector have high current ratios.

Note that the following list excludes all companies whose market capitalization is less than $500 million:

  1. Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN):  The stock has traded in a 52-week range of $9.90 to $12.71 and most recently traded at $11.59 per share.  Its market capitalization is $660 million and it earned $3.03 er share last year.  Its current ratio is 23.64 and its book value per share is $5.64.About the company: Enzon Pharmaceuticals, Inc. is a biopharmaceutical company that discovers, develops, and commercializes therapeutics to treat life-threatening diseases.  The Company has developed several products, including PEG-INTRON.  Enzon’s product-focused strategy includes a drug development program that leverages its PEG modification and single-chain antibody technologies.
  2. HeartWare International, Inc. (NASDAQ:HTWR):  The shares have traded in a 52-week range of $52.22 to $99.10 and most recently traded at $79.01.  Its market capitalization is $.12 billion and it lost $.245 per share last year.  Its current ratio is 23.06 and its book value per share is $11.45.  About the company: HeartWare International, Inc. is developing a range of implantable mechanical circulatory assist devices or heart pumps, used for the treatment of congestive heart failure.
  3. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX):  The shares have traded in a 52-week range of $1.17 to $2.30 and most recently traded at $1.66 per share.  Its market capitalization is $560 million and it lost $0.34 per share last year.  About the company: Lexicon Pharmaceuticals, Inc. is a biopharmaceutial company.  The Company researches treatments for diabetes and obesity, cardiovascular disease, psychiatric and neurological disorders, cancer, immune system disorders, and ophthalmic disease.
  4. Myriad Genetics, Inc. (NASDAQ:MYGN):  The shares have traded in a 52-week range of $11.41 to $24.51 and most recently traded at $24.48.  Its market capitalization is $2.1 billion and it earned $1.35 per share last year.  Its current ratio is 17.78 and its book value per share is $6.12.  About the company:  Myriad Genetics, Inc. develops and markets molecular diagnostic products to provide physicians with information to help guide the care of their patients, to prevent disease, delay the onset of disease, or catch disease at an early stage.
  5. Pacific Biosciences of California (NASDAQ:PACB):  The shares have traded in a 52-week range of $10.27 to $17.47 and most recently traded at $11.37 per share.  Its maret capitalization is $600 million  and it lost $6.30 per share last year.  Its current ratio is 10.95 and its book value per share is $4.71.  About the company: Pacific Biosciences of California, Inc. has developed a novel approach to studying the synthesis and regulation of DNA, RNA and protein.  The Company’s system enables real-time analysis of biomolecules with single molecule resolution.

The current ratio is calculated as current assets over current liabilities.  Current assets are those accounts such as cash, receivables, and other highly liquid assets that can be readily converted to cash.  Current liabilities are generally considered to be those debts due within one fiscal quarter, such as accounts payable, wages, interest payments on long-term debt that are due in the near future, etc.  Therefore, the current ratio is essentially a measure of a company’s ability to pay its bills in the near term.  Companies that are liquid enough to pay their bills can continue operating without trouble.  Accordingly, the higher the current ratio the more likely it is that the company won’t have a problem paying its bills.  Of course, as with all financial ratios, the current ratio can’t be used in isolation to determine whether a stock is a buy or not.

Value playsThese Healthcare Stocks Have Very Low P/E Ratios in the Sector>>

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

Fresh Off the Press: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet