ANI Pharmaceuticals Inc (ANIP)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	144,861	144,982	240,110	228,597	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
Short-term investments	US$ in thousands	6,307	8,298	6,943	9,655	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	193,680	189,933	139,978	136,889	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
Cash ratio		0.78	0.81	1.76	1.74	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,861K + $6,307K) ÷ $193,680K
= 0.78

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and a better ability to meet its short-term obligations without relying on external sources of funding.

Based on the data provided for ANI Pharmaceuticals Inc, the cash ratio fluctuated over the given period. The cash ratio ranged from a low of 0.10 on December 31, 2020, to a high of 1.76 on June 30, 2024. The lowest point indicates that ANI Pharmaceuticals had relatively lower cash reserves compared to its short-term liabilities at that time, while the highest point signifies that the company had significantly more cash on hand than its immediate obligations.

Overall, it can be observed that the cash ratio showed variability throughout the period, but generally maintained above 1 from June 30, 2023, onwards, indicating a strong liquidity position and the ability to comfortably cover short-term liabilities with its cash and cash equivalents. Stakeholders can interpret this as a positive sign of the company's financial health and ability to withstand potential short-term financial challenges.