Amphastar P (AMPH)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	151,609	144,296	156,098	126,353	92,642
Short-term investments	US$ in thousands	70,036	112,510	19,664	10,320	12,977
Total current liabilities	US$ in thousands	173,759	225,407	94,862	103,810	112,201
Cash ratio		1.28	1.14	1.85	1.32	0.94

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($151,609K + $70,036K) ÷ $173,759K
= 1.28

The cash ratio of Amphastar P has shown some variability over the years. As of December 31, 2020, the cash ratio stood at 0.94, indicating that the company had $0.94 in cash and cash equivalents for every $1 of current liabilities. This ratio increased to 1.32 by December 31, 2021, suggesting an improvement in the company's ability to meet its short-term obligations using its cash reserves.

By December 31, 2022, the cash ratio further rose to 1.85, signaling a significant strengthening of the company's liquidity position. However, there was a slight decrease in the cash ratio to 1.14 by December 31, 2023, which may be worth investigating further to understand the potential reasons behind this decline.

As of December 31, 2024, the cash ratio stood at 1.28, indicating that the company still maintains a healthy level of liquidity to cover its short-term liabilities. Overall, the trend in the cash ratio of Amphastar P demonstrates a generally positive liquidity position over the years, with some fluctuations that may warrant closer monitoring and analysis.