ACADIA Pharmaceuticals Inc (ACAD)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	319,589	155,149	177,134	204,745	188,657	98,193	107,941	290,895	114,846	154,842	139,833	204,920	147,435	94,640	266,956	304,487	326,028	452,352	310,441	173,059
Short-term investments	US$ in thousands	436,404	410,181	323,808	265,775	250,208	247,727	267,437	111,978	301,977	281,737	296,518	241,057	373,271	445,651	289,962	273,281	305,930	192,089	348,110	478,347
Total current liabilities	US$ in thousands	394,870	343,945	337,851	330,597	254,254	209,603	187,942	224,301	125,630	116,570	117,681	119,603	96,068	88,218	95,328	109,373	105,967	91,856	86,422	99,741
Cash ratio		1.91	1.64	1.48	1.42	1.73	1.65	2.00	1.80	3.32	3.75	3.71	3.73	5.42	6.12	5.84	5.28	5.96	7.02	7.62	6.53

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($319,589K + $436,404K) ÷ $394,870K
= 1.91

ACADIA Pharmaceuticals Inc's cash ratio has fluctuated over the years based on the provided data. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

From March 31, 2020, to June 30, 2021, the cash ratio gradually increased from 6.53 to 7.62, reflecting an improvement in the company's ability to meet its short-term obligations with cash on hand. However, from March 31, 2021, to December 31, 2024, the cash ratio experienced a declining trend, dropping to as low as 1.42 by March 31, 2024.

The decreasing cash ratio may signal potential liquidity challenges for ACADIA Pharmaceuticals Inc as it indicates a decreasing ability to cover its short-term liabilities with available cash. It is important for the company to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its financial obligations and fund its operations.