ANI Pharmaceuticals Inc (ANIP)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	221,121	48,228	100,300	7,864	62,332
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	145,477	99,439	87,537	78,565	61,676
Cash ratio		1.52	0.49	1.15	0.10	1.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($221,121K + $—K) ÷ $145,477K
= 1.52

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. ANI Pharmaceuticals Inc's cash ratio has shown fluctuations over the past five years, ranging from 0.17 to 1.64.

In 2023, the cash ratio has significantly improved to 1.64 compared to the previous year, indicating a stronger ability to cover short-term liabilities with cash reserves. This suggests that ANI Pharmaceuticals Inc has increased its cash holdings relative to its short-term obligations, which may be a positive sign of financial health.

On the other hand, the cash ratio was relatively low in 2020 at 0.17, indicating a potential liquidity risk as the company may have struggled to cover its short-term liabilities with its available cash. However, the cash ratio improved significantly in the following years, reaching 1.27 in 2021 and 1.09 in 2019.

Overall, the trend in ANI Pharmaceuticals Inc's cash ratio shows varying levels of liquidity over the past five years, with improvements in recent years. Investors and stakeholders may find this analysis useful in assessing the company's ability to meet short-term obligations using its cash resources.