Zai Lab Limited (ZLAB) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 3, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ZLAB SEC filings page.
Zai Lab Limited (ZLAB) reported $449.6M in revenue over the twelve months to Jun 30, 2026, up 5.1% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Zai Lab is scaling revenue while shrinking losses, but margin compression and a thinner balance-sheet cushion make financing more demanding.
In FY2025, operating cash outflow was$151M and free cash flow was-$159M ; their close alignment indicates that capital spending, rather than the core cash economics, was not the main source of cash usage. This is an earnings-quality signal: accounting losses were broadly reflected in cash movements.
Revenue expanded from
The current ratio fell from 7.8x in FY2021 to 2.4x in FY2025, leaving less excess short-term asset coverage. At the same time, debt-to-equity rose from 0.2x to 0.6x, indicating a balance sheet becoming more reliant on external financing relative to its equity base.
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Zai Lab Limited's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Zai Lab Limited held $689.6M in cash, cash equivalents and investments at the end of fiscal year 2025, and its operations used $150.8M of cash that year. Cash Runway ranks emerging companies on the size of that balance against the outflow behind it, and Zai Lab Limited scores 68/100 among other emerging companies.
Zai Lab Limited had 1.11B shares outstanding at the end of fiscal year 2025, against 1.08B in fiscal year 2024. Dilution ranks emerging companies on how fast that count has grown over three years, where a slower rise is the better one, and Zai Lab Limited scores 55/100 among other emerging companies.
Zai Lab Limited spent $220.9M on research and development in fiscal year 2025, which was 32.0% of its operating costs that year. R&D Intensity ranks emerging companies on the share of operating costs that goes into research, and Zai Lab Limited scores 64/100 among other emerging companies.
Zai Lab Limited reported revenue of $460.2M in fiscal year 2025, against $399.0M in fiscal year 2024. Revenue Progress ranks emerging companies on the three-year path of that line, and Zai Lab Limited scores 72/100 among other emerging companies.
Zai Lab Limited's operations used $150.8M of cash in fiscal year 2025, against $214.9M used in fiscal year 2024. Burn Trend ranks emerging companies on which way that figure has moved over three years, and Zai Lab Limited scores 58/100 among other emerging companies.
Zai Lab Limited's cash, cash equivalents and investments came to $689.6M at the end of fiscal year 2025, against $456.9M of total liabilities. Balance Sheet ranks emerging companies on that comparison, and Zai Lab Limited scores 69/100 among other emerging companies.
Zai Lab Limited scores 0.81, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($2.7B) relative to total liabilities ($456.9M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Zai Lab Limited passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Zai Lab Limited reported a net loss of $175.5M while operations used $150.8M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Zai Lab Limited reported an operating loss of $229.4M against $5.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Zai Lab Limited generated $106.3M in revenue in Q2 2026. This represents a decrease of 3.3% from the same quarter a year earlier. Against the prior quarter it is up 6.7%.
Zai Lab Limited's EBITDA was -$72.3M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 41.5% from the same quarter a year earlier. Against the prior quarter it is down 10.5%.
Zai Lab Limited reported -$50.8M in net income in Q2 2026. This represents a decrease of 24.8% from the same quarter a year earlier. Against the prior quarter it is up 0.4%.
Zai Lab Limited earned -$0.05 per diluted share (EPS) in Q2 2026. This represents a decrease of 25.0% from the same quarter a year earlier. It is unchanged from the prior quarter.
Cash & Balance Sheet
Zai Lab Limited recorded an outflow of $64.7M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 90.8% from the same quarter a year earlier. Against the prior quarter it is down 393.7%.
Zai Lab Limited held $607.5M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Zai Lab Limited's gross margin was 54.7% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 6.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 6.8 percentage points.
Zai Lab Limited's operating margin was -72.0% in Q2 2026, reflecting core business profitability. This is down 22.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.3 percentage points.
Zai Lab Limited's net profit margin was -47.8% in Q2 2026, showing the share of revenue converted to profit. This is down 10.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.4 percentage points.
Zai Lab Limited's ROE was -8.4% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 3.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.7 percentage points.
Capital Allocation
Zai Lab Limited invested $61.8M in research and development in Q2 2026. This represents an increase of 22.0% from the same quarter a year earlier. Against the prior quarter it is down 5.8%.
Zai Lab Limited invested $1.3M in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 54.6% from the same quarter a year earlier. Against the prior quarter it is up 9.5%.
Not reported for Q2 2026.
ZLAB Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $106.3M-3.3% | $99.6M-6.5% | $127.6M+17.0% | $116.1M+13.5% | $110.0M+9.4% | $106.5M+22.2% | $109.1M+65.7% | $102.3M+47.7% |
| Cost of Revenue | $48.2M+12.0% | $38.3M-0.4% | $62.3M+49.1% | $46.8M+27.9% | $43.0M+22.3% | $38.5M+14.4% | $41.8M+65.6% | $36.6M+43.5% |
| Gross Profit | $58.1M-13.2% | $61.3M-9.9% | $65.3M-3.0% | $69.3M+5.5% | $67.0M+2.5% | $68.0M+27.1% | $67.3M+65.8% | $65.7M+50.2% |
| R&D Expenses | $61.8M+22.0% | $65.6M+8.0% | $61.6M+18.0% | $47.9M-27.4% | $50.6M-17.9% | $60.7M+11.1% | $52.3M-36.2% | $66.0M+12.3% |
| SG&A Expenses | $72.9M+2.6% | $65.1M+2.6% | $73.0M-11.6% | $70.1M+4.3% | $71.0M-10.9% | $63.4M-8.3% | $82.6M0.0% | $67.2M-1.9% |
| Operating Income | -$76.5M-39.3% | -$69.4M-23.2% | -$69.4M-2.2% | -$48.8M+28.0% | -$54.9M+27.8% | -$56.3M+19.9% | -$67.9M+45.2% | -$67.9M+18.8% |
| EBITDA | -$72.3M-41.5% | -$65.4M-23.8% | -$65.6M-1.1% | -$44.9M+30.9% | -$51.1M+30.1% | -$52.9M+21.5% | -$64.8M+46.6% | -$65.1M+20.2% |
| Interest Expense | $1.6M+25.8% | $1.6M+37.9% | $1.4M+50.4% | $1.4M+87.9% | $1.3M+156.5% | $1.2M+950.4% | $904K | $745K |
| Income Tax | -$1.0M | $1.4M | -$2.9M | $0 | $0 | $0 | $0 | $0 |
| Net Income | -$50.8M-24.8% | -$51.0M-5.3% | -$50.4M+38.3% | -$36.0M+13.7% | -$40.7M+49.3% | -$48.4M+9.4% | -$81.7M+14.4% | -$41.7M+39.7% |
| EPS (Basic) | -$0.05-25.0% | -$0.05-25.0% | -$0.05+37.5% | -$0.03+25.0% | -$0.04+50.0% | -$0.04+20.0% | -$0.08+20.0% | -$0.04+42.9% |
| EPS (Diluted) | -$0.05-25.0% | -$0.05-25.0% | -$0.05+37.5% | -$0.03+25.0% | -$0.04+50.0% | -$0.04+20.0% | -$0.08+20.0% | -$0.04+42.9% |
| Diluted Shares (Avg) | 1.12B+2.3% | 1.11B+2.5% | N/A | 1.10B+12.3% | 1.09B+11.9% | 1.08B+11.1% | N/A | 982M+1.3% |
ZLAB Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.1B-7.7% | $1.1B-6.6% | $1.2B-1.1% | $1.2B+17.6% | $1.2B+17.9% | $1.2B+18.7% | $1.2B+14.4% | $985.3M-5.6% |
| Current Assets | $914.0M-11.6% | $944.7M-9.3% | $1.0B-3.0% | $1.0B+20.0% | $1.0B+18.9% | $1.0B+17.2% | $1.1B+11.8% | $860.5M-10.3% |
| Cash & Equivalents | $607.5M-17.0% | $651.3M-14.0% | $679.6M+51.1% | $717.2M+16.4% | $732.2M+16.2% | $757.3M+16.4% | $449.7M-43.1% | $616.1M-21.9% |
| Short-Term Investments | $10.0M | $10.0M | $10.0M-97.0% | $0 | $0 | $0 | $330.0M+1924.5% | $0-100.0% |
| Inventory | $90.9M+47.3% | $86.0M+62.0% | $74.7M+87.4% | $67.1M+69.8% | $61.7M+47.4% | $53.1M+40.2% | $39.9M-11.0% | $39.5M-10.6% |
| Accounts Receivable | $69.6M-21.4% | $54.1M-29.4% | $106.1M+24.6% | $85.4M+70.9% | $88.5M+27.1% | $76.6M+26.7% | $85.2M+43.9% | $50.0M+20.1% |
| Long-Term Investments | $0 | $0 | $0-100.0% | $0-100.0% | $0-100.0% | $0-100.0% | $3.1M-66.2% | $3.2M-29.4% |
| Total Liabilities | $467.8M+25.6% | $433.8M+19.6% | $456.9M+32.5% | $399.0M+25.6% | $372.4M+31.5% | $362.6M+60.2% | $344.9M+43.6% | $317.7M+95.2% |
| Current Liabilities | $428.6M+29.3% | $393.0M+22.9% | $416.2M+39.0% | $359.8M+25.7% | $331.5M+31.7% | $319.8M+66.5% | $299.4M+47.4% | $286.3M+129.2% |
| Non-Current Liabilities | $39.2M-4.1% | $40.8M-4.7% | $40.7M-10.5% | $39.2M+25.1% | $40.9M+29.8% | $42.8M+25.2% | $45.5M+22.5% | $31.4M-17.1% |
| Total Equity | $607.0M-23.3% | $662.0M-18.3% | $715.5M-14.9% | $759.9M+13.8% | $791.7M+12.4% | $810.8M+6.4% | $840.9M+5.6% | $667.7M-24.2% |
| Retained Earnings | -$2.7B-7.4% | -$2.7B-7.1% | -$2.6B-7.2% | -$2.6B-8.7% | -$2.5B-9.1% | -$2.5B-11.2% | -$2.5B-11.7% | -$2.4B-12.9% |
Not reported in any period shown, so not listed: Goodwill, Long-Term Debt.
ZLAB Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$63.4M-104.4% | -$11.9M+80.7% | -$26.0M+53.3% | -$32.0M-19.5% | -$31.0M+26.4% | -$61.7M+31.5% | -$55.8M-273.9% | -$26.8M+51.5% |
| Depreciation & Amortization | $4.2M+10.5% | $3.9M+14.1% | $3.9M+29.2% | $3.9M+39.3% | $3.8M+26.7% | $3.5M+14.8% | $3.0M+23.3% | $2.8M+40.0% |
| Stock-Based Compensation | $12.1M-28.6% | $13.5M-14.4% | N/A | $16.9M+0.8% | $17.0M-8.9% | $15.8M-12.1% | N/A | $16.8M-23.6% |
| Capital Expenditures | $1.3M-54.6% | $1.2M-22.1% | $677K-74.0% | $3.0M+123.9% | $2.9M+289.3% | $1.5M+57.5% | $2.6M+1071.2% | $1.3M-23.6% |
| Free Cash Flow | -$64.7M-90.8% | -$13.1M+79.3% | -$26.7M+54.3% | -$35.0M-24.5% | -$33.9M+21.0% | -$63.2M+30.6% | -$58.4M-285.6% | -$28.2M+50.6% |
| Investing Cash Flow | -$1.4M+51.5% | -$22.3M-106.8% | -$11.3M+96.8% | -$4.0M+86.5% | -$2.9M-245.4% | $326.1M+9806.8% | -$347.8M-2505.4% | -$29.9M-113.8% |
| Financing Cash Flow | $18.7M+111.4% | $5.6M-87.1% | -$430K-100.2% | $20.8M-50.7% | $8.8M-60.4% | $43.1M-9.3% | $237.8M+60412.0% | $42.2M+3016.9% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
ZLAB Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.7%-6.2pp | 61.5%-2.4pp | 51.2%-10.5pp | 59.7%-4.5pp | 60.9%-4.1pp | 63.9%+2.5pp | 61.7%0.0pp | 64.2%+1.0pp |
| Operating Margin | -72.0%-22.0pp | -69.7%-16.8pp | -54.4%+7.9pp | -42.0%+24.3pp | -49.9%+25.8pp | -52.9%+27.8pp | -62.3% | -66.3% |
| Net Margin | -47.8%-10.8pp | -51.2%-5.7pp | -39.5%+35.4pp | -31.0%+9.8pp | -37.0%+42.8pp | -45.5%+15.9pp | -74.9% | -40.8%+59.1pp |
| Return on Equity | -8.4%-3.2pp | -7.7%-1.7pp | -7.0%+2.7pp | -4.7%+1.5pp | -5.1%+6.3pp | -6.0%+1.0pp | -9.7%+2.3pp | -6.2%+1.6pp |
| Return on Assets | -4.7%-1.2pp | -4.7%-0.5pp | -4.3%+2.6pp | -3.1%+1.1pp | -3.5%+4.6pp | -4.1%+1.3pp | -6.9%+2.3pp | -4.2%+2.4pp |
| Current Ratio | 2.13-1.0x | 2.40-0.9x | 2.45-1.1x | 2.87-0.1x | 3.12-0.3x | 3.26-1.4x | 3.51-1.1x | 3.01-4.7x |
| Debt-to-Equity | 0.77+0.3x | 0.66+0.2x | 0.64+0.2x | 0.530.0x | 0.47+0.1x | 0.45+0.2x | 0.41+0.1x | 0.48+0.3x |
| Asset Turnover | 0.100.0x | 0.090.0x | 0.110.0x | 0.100.0x | 0.090.0x | 0.090.0x | 0.090.0x | 0.100.0x |
| FCF Margin | -60.9%-30.0pp | -13.2%+46.2pp | -20.9%+32.6pp | -30.2%-2.7pp | -30.8%+11.9pp | -59.4% | -53.5%-30.5pp | -27.5%+54.8pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Zai Lab Limited ZLAB | FY2025 | $460.2M | -$175.5M | -38.1% | $2.7B | 64/100 |
| Ascentage Pharma Group International AAPG | FY2025 | $71.4M | -$177.7M | N/A | $1.4B | 24/100 |
| Krystal Biotech, Inc. KRYS | FY2025 | $389.1M | $204.8M | 52.6% | $9.5B | 59/100 |
| Metsera, Inc. MTSR | FY2024 | N/A | -$209.1M | N/A | $7.4B | — |
| ADMA Biologics, Inc. ADMA | FY2025 | $510.2M | $146.9M | 28.8% | $2.2B | 81/100 |
| Mirum Pharmaceuticals, Inc. MIRM | FY2025 | $521.3M | -$23.4M | -4.5% | $5.4B | 71/100 |
Where Zai Lab Limited Ranks
Frequently Asked Questions
What is Zai Lab Limited's annual revenue?
Zai Lab Limited (ZLAB) reported $460.2M in total revenue for fiscal year 2025. This represents a 15.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Zai Lab Limited's revenue growing?
Zai Lab Limited (ZLAB) revenue grew by 15.3% year-over-year, from $399.0M to $460.2M in fiscal year 2025.
Is Zai Lab Limited profitable?
No, Zai Lab Limited (ZLAB) reported a net income of -$175.5M in fiscal year 2025, with a net profit margin of -38.1%.
What is Zai Lab Limited's EBITDA?
Zai Lab Limited (ZLAB) had EBITDA of -$214.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Zai Lab Limited's gross margin?
Zai Lab Limited (ZLAB) had a gross margin of 58.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Zai Lab Limited's operating margin?
Zai Lab Limited (ZLAB) had an operating margin of -49.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Zai Lab Limited's net profit margin?
Zai Lab Limited (ZLAB) had a net profit margin of -38.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Zai Lab Limited's return on equity (ROE)?
Zai Lab Limited (ZLAB) has a return on equity of -24.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Zai Lab Limited's free cash flow?
Zai Lab Limited (ZLAB) recorded an outflow of $158.9M in free cash flow during fiscal year 2025. This represents a 27.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Zai Lab Limited's operating cash flow?
Zai Lab Limited (ZLAB) recorded an outflow of $150.8M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Zai Lab Limited's total assets?
Zai Lab Limited (ZLAB) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Zai Lab Limited's capital expenditures?
Zai Lab Limited (ZLAB) invested $8.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Zai Lab Limited spend on research and development?
Zai Lab Limited (ZLAB) invested $220.9M in research and development during fiscal year 2025.
What is Zai Lab Limited's current ratio?
Zai Lab Limited (ZLAB) had a current ratio of 2.45 as of fiscal year 2025, which is generally considered healthy.
What is Zai Lab Limited's debt-to-equity ratio?
Zai Lab Limited (ZLAB) had a debt-to-equity ratio of 0.64 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Zai Lab Limited's return on assets (ROA)?
Zai Lab Limited (ZLAB) had a return on assets of -15.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Zai Lab Limited's P/E ratio?
Zai Lab Limited (ZLAB) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $2.7B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Zai Lab Limited's price-to-sales ratio?
Zai Lab Limited (ZLAB) trades at 6.1x sales, its market capitalization divided by revenue of $449.6M revenue, trailing 12 months to June 30, 2026. The market capitalization is $2.7B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
How does Zai Lab Limited's liquidity compare with its operating cash outflow?
At the end of fiscal year 2025, Zai Lab Limited (ZLAB) held $689.6M in cash, cash equivalents and investments, and reported an operating cash outflow of $150.8M over that year. Dividing the one by the other, the reported balance equals about 55 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Zai Lab Limited's Altman Z-Score?
Zai Lab Limited (ZLAB) has an Altman Z-Score of 0.81, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Zai Lab Limited's Piotroski F-Score?
Zai Lab Limited (ZLAB) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Zai Lab Limited's earnings high quality?
Zai Lab Limited (ZLAB) reported a net loss of $175.5M while operations used $150.8M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Zai Lab Limited cover its interest payments?
Zai Lab Limited (ZLAB) reported an operating loss of $229.4M against $5.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Zai Lab Limited?
Zai Lab Limited (ZLAB) scores 64 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.