ANI Pharmaceuticals Inc (ANIP)

ANI Pharmaceuticals Inc has shown an improvement in its current ratio over the past five years, increasing from 2.17 in December 31, 2020, to 3.57 in December 31, 2023. This implies the company's ability to meet its short-term obligations with its current assets has strengthened over this period. However, there was a slight decrease in the current ratio to 2.72 as of December 31, 2024.

In terms of the quick ratio, ANI Pharmaceuticals Inc also exhibited fluctuating levels over the five-year period. The quick ratio rose from 0.10 in December 31, 2020, to 1.52 in December 31, 2023, indicating an increased ability to cover immediate liabilities with its most liquid assets. However, there was a subsequent decrease to 0.78 by the end of December 31, 2024.

The cash ratio, which is a more stringent measure of liquidity, shows similar trends to the quick ratio. There was a notable increase in the cash ratio from 0.10 in December 31, 2020, to 1.52 in December 31, 2023, suggesting a stronger ability to cover short-term obligations with available cash. The cash ratio also experienced a decrease to 0.78 as of December 31, 2024.

Overall, while the liquidity ratios of ANI Pharmaceuticals Inc have displayed some variations over the years, the company has generally maintained sufficient liquidity to meet its short-term obligations. It's important to monitor these ratios regularly to ensure continued financial stability and ability to weather any short-term financial challenges.

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Additional liquidity measure

The cash conversion cycle of ANI Pharmaceuticals Inc has shown some fluctuations over the past five years. As of December 31, 2020, the cash conversion cycle was at 254.63 days, indicating that it took the company approximately 255 days to convert its resources invested in inventory back into cash receipts from customers.

By December 31, 2021, the cash conversion cycle increased to 296.37 days, showing that the company took longer to convert its inventory into cash during that period. However, by December 31, 2022, the cycle decreased to 277.08 days, showing some improvement in the company's efficiency in managing its working capital.

There was a significant improvement in the cash conversion cycle by December 31, 2023, where it decreased to 223.60 days. This improvement suggests that the company was able to more efficiently manage its cash flows and working capital during that year.

Furthermore, by the end of December 31, 2024, the cash conversion cycle further decreased to 199.53 days, indicating a continued improvement in the company's ability to convert its inventory into cash and manage its working capital effectively.

Overall, ANI Pharmaceuticals Inc has demonstrated varying levels of efficiency in managing its cash conversion cycle over the five-year period, with fluctuations reflecting changes in the company's working capital management practices.