ACADIA Pharmaceuticals Inc (ACAD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 319,589 | 188,657 | 114,846 | 147,435 | 326,028 |
| Short-term investments | US$ in thousands | 436,404 | 250,208 | 301,977 | 373,271 | 305,930 |
| Total current liabilities | US$ in thousands | 394,870 | 254,254 | 125,630 | 96,068 | 105,967 |
| Cash ratio | 1.91 | 1.73 | 3.32 | 5.42 | 5.96 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($319,589K
+ $436,404K)
÷ $394,870K
= 1.91
The cash ratio of ACADIA Pharmaceuticals Inc has fluctuated over the past five years. As of December 31, 2020, the cash ratio was 5.96, indicating the company had a relatively high level of cash compared to its current liabilities. However, this ratio decreased to 5.42 by December 31, 2021, and further declined to 3.32 by December 31, 2022. This downward trend suggests a potential decrease in the company's ability to cover its short-term obligations solely with its available cash.
The ratio continued to decrease to 1.73 by December 31, 2023, indicating a significant decrease in the company's liquidity position compared to its immediate liabilities. Although there was a slight improvement to 1.91 by December 31, 2024, the cash ratio still remains relatively low.
Overall, the decreasing trend in the cash ratio of ACADIA Pharmaceuticals Inc raises concerns about the company's ability to meet its short-term financial obligations solely relying on its cash reserves. It may indicate a need for the company to manage its cash resources more effectively and potentially explore other sources of liquidity to improve its financial stability.
Peer comparison
Dec 31, 2024