Enanta Pharmaceuticals Inc (ENTA)

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Is Enanta Pharmaceuticals (NASDAQ:ENTA) Using Debt In A Risky Way? June 19, 2024

According to the last reported balance sheet, Enanta Pharmaceuticals had liabilities of US$54.6m due within 12 months, and liabilities of US$192.8m due beyond 12 months. Offsetting this, it had US$300.3m in cash and US$39.8m in receivables that were due within 12 months. So it can boast US$92.7m more liquid assets than total liabilities.

This surplus strongly suggests that Enanta Pharmaceuticals has a rock-solid balance sheet (and the debt is of no concern whatsoever). Having regard to this fact, we think its balance sheet is as strong as an ox. Simply put, the fact that Enanta Pharmaceuticals has more cash than debt is arguably a good indication that it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Enanta Pharmaceuticals's ability to maintain a healthy balance sheet going forward.

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https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-enta/enanta-pharmaceuticals/news/is-enanta-pharmaceuticals-nasdaqenta-using-debt-in-a-risky-w-1