Amphastar P (AMPH)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	144,296	266,778	148,595	176,615	156,098	157,244	166,157	172,627	126,353	106,610	105,432	101,601	92,642	87,910	87,388	54,845	73,685	85,611	120,373	79,096
Short-term investments	US$ in thousands	112,510	33,098	14,541	16,277	19,664	26,843	17,234	14,383	10,320	8,021	11,745	13,531	12,977	10,873	11,101	12,203	11,675	12,666	2,836	2,834
Receivables	US$ in thousands	114,943	118,990	104,715	100,638	88,804	77,099	80,810	73,166	78,804	78,090	67,893	77,938	66,005	52,382	49,862	57,784	45,376	45,255	48,823	54,930
Total current liabilities	US$ in thousands	225,407	257,963	251,285	105,635	94,862	102,190	103,634	114,364	103,810	97,989	124,549	127,096	112,201	96,717	93,286	83,371	90,009	86,596	100,999	111,959
Quick ratio		1.65	1.62	1.07	2.78	2.79	2.56	2.55	2.27	2.08	1.97	1.49	1.52	1.53	1.56	1.59	1.50	1.45	1.66	1.70	1.22

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($144,296K + $112,510K + $114,943K) ÷ $225,407K
= 1.65

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 indicates that a company has just enough liquid assets to cover its current liabilities.

Based on the data provided for Amphastar Pharmaceuticals Inc, the quick ratio has fluctuated over the past eight quarters. In Q1 2023, the quick ratio was significantly higher at 2.86, indicating that the company had more than enough liquid assets to cover its short-term liabilities. This may suggest strong liquidity and a lower risk of financial distress.

However, in Q2 2023, the quick ratio dropped to 1.09, signaling a potential liquidity issue as the company may have had difficulty meeting its short-term obligations with its available liquid assets. It is important to investigate the reasons behind this sharp decline and assess whether it is a temporary anomaly or a more concerning trend.

Overall, the trend in Amphastar Pharmaceuticals Inc's quick ratio fluctuates, highlighting the importance of closely monitoring liquidity levels to ensure the company can meet its financial obligations in a timely manner.