Amphastar P (AMPH)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	144,296	156,098	126,353	92,642	73,685
Short-term investments	US$ in thousands	112,510	19,664	10,320	12,977	11,675
Total current liabilities	US$ in thousands	225,407	94,862	103,810	112,201	90,009
Cash ratio		1.14	1.85	1.32	0.94	0.95

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,296K + $112,510K) ÷ $225,407K
= 1.14

The cash ratio of Amphastar Pharmaceuticals Inc has shown fluctuations over the past five years. In 2023, the cash ratio declined to 1.18 compared to 1.93 in 2022, indicating a decrease in the company's ability to cover its current liabilities with its cash and cash equivalents. Despite the decrease, the ratio remains above 1, suggesting that the company still has sufficient cash to cover its short-term obligations.

The significant increase in the cash ratio from 2020 to 2022 shows an improvement in the company's liquidity position, as it indicates that the company had more cash on hand relative to its current liabilities during these years.

Overall, the cash ratio for Amphastar Pharmaceuticals Inc has generally been above 1 in the past five years, indicating that the company has maintained a healthy level of liquidity to meet its short-term obligations. However, investors and stakeholders should continue to monitor changes in the cash ratio to assess the company's ongoing liquidity position and financial health.