ANI Pharmaceuticals Inc (ANIP)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	527,684	519,816	344,261	321,775	170,321
Total current liabilities	US$ in thousands	193,680	145,477	99,439	87,537	78,565
Current ratio		2.72	3.57	3.46	3.68	2.17

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $527,684K ÷ $193,680K
= 2.72

Based on the provided data, the current ratio of ANI Pharmaceuticals Inc has shown some fluctuations over the five-year period. The current ratio measures the company's ability to meet its short-term liabilities with its short-term assets.

In December 2020, the company had a current ratio of 2.17, indicating that it had $2.17 in current assets for every $1 in current liabilities. This implies a relatively healthy liquidity position.

By December 2021, the current ratio had improved significantly to 3.68, suggesting a stronger ability to cover short-term obligations with current assets. This increase could indicate improved management of working capital or increased cash reserves.

However, in the following years, the current ratio decreased slightly, settling at 3.46 by December 2022, 3.57 by December 2023, and 2.72 by December 2024. While the current ratio remained above 1 in all years, indicating the company's ability to meet its short-term obligations, the decreasing trend might be a point of concern.

The fluctuation in the current ratio could be attributed to changes in the composition of current assets and liabilities, shifts in operating cycles, or variations in the company's financial management practices.

In conclusion, ANI Pharmaceuticals Inc has exhibited varying levels of liquidity over the five-year period, with an overall ability to cover short-term liabilities, although there was a slight decline in the ratio in the latter years of the period.