ANI Pharmaceuticals Inc (ANIP)

Cash 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 and cash equivalents	US$ in thousands	221,121	193,078	161,707	67,757	48,228	56,281	63,385	76,911	100,300	15,254	24,261	25,073	7,864	17,900	27,702	20,414	62,332	59,673	40,589	38,233
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	145,477	134,352	122,865	125,825	99,439	81,627	96,312	79,532	87,537	84,872	89,454	82,768	78,565	75,900	79,088	79,356	61,676	170,707	166,794	165,068
Cash ratio		1.52	1.44	1.32	0.54	0.49	0.69	0.66	0.97	1.15	0.18	0.27	0.30	0.10	0.24	0.35	0.26	1.01	0.35	0.24	0.23

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 cash and cash equivalents. The higher the cash ratio, the more capable the company is in meeting its immediate financial obligations.

Based on the data provided for ANI Pharmaceuticals Inc, we can observe fluctuations in the cash ratio over the past eight quarters. The cash ratio has generally been increasing over time, indicating an improvement in the company's liquidity position.

In Q1 2023, the cash ratio was notably low at 0.62, suggesting that ANI Pharmaceuticals had relatively less cash on hand to cover its short-term liabilities. However, in subsequent quarters, the cash ratio showed a significant increase, reaching 1.64 in Q4 2023. This indicates that the company had improved its ability to meet its short-term obligations using its cash reserves.

Overall, the trend of increasing cash ratio reflects positively on ANI Pharmaceuticals Inc's liquidity management and suggests that the company is in a better position to handle its short-term financial commitments. However, it is important to assess other liquidity ratios and consider the industry benchmarks for a more comprehensive analysis of the company's financial health.