ANI Pharmaceuticals Inc (ANIP)

ANI Pharmaceuticals Inc has shown consistently strong liquidity ratios over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been consistently above 2. This indicates that ANI Pharmaceuticals Inc has more than enough current assets to meet its short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a healthy liquidity position for the company. ANI Pharmaceuticals Inc has maintained a quick ratio above 1, indicating its ability to cover its current liabilities even if inventory cannot be quickly converted into cash.

Furthermore, the cash ratio, which measures the ability to cover current liabilities with only cash and cash equivalents, has also shown a positive trend over the years. ANI Pharmaceuticals Inc has increased its cash reserves relative to its current liabilities, providing a more conservative measure of liquidity.

Overall, the liquidity ratios of ANI Pharmaceuticals Inc suggest that the company has a strong ability to meet its short-term obligations and manage its liquidity effectively. This indicates a sound financial position and the ability to withstand any unforeseen financial challenges in the near term.

---

Additional liquidity measure

The cash conversion cycle of ANI Pharmaceuticals Inc has shown some variability over the past five years. In 2023, the cash conversion cycle decreased to 271.36 days from 390.87 days in 2022. This indicates that the company took less time to convert its investments in inventory into cash receipts from sales and then into cash payments for raw materials.

Comparing 2023 to earlier years, the company has managed its working capital more efficiently. In 2021 and 2022, the cash conversion cycle was relatively high at 430.10 days and 390.87 days, respectively, suggesting a longer period for the conversion process. However, in 2020 and 2019, the cycle was lower at 375.19 days and 321.41 days, respectively.

Overall, the trend in the cash conversion cycle for ANI Pharmaceuticals Inc shows a recent improvement, indicating better management of inventory, accounts receivable, and accounts payable. Decreasing the cycle time suggests potential enhancements in production efficiency, sales and collection processes, and supplier payment management, all contributing to a more streamlined cash flow and improved liquidity position.