ANI Pharmaceuticals Inc (ANIP)

Liquidity ratios

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
Current ratio 2.72 2.74 3.97 3.95 3.57 3.70 3.74 2.90 3.46 3.79 3.35 3.79 3.68 2.25 2.14 2.21 2.17 2.18 1.98 2.00
Quick 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
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

ANI Pharmaceuticals Inc has shown a consistent improvement in its current ratio over the last few years, increasing from 2.00 in March 2020 to 3.46 in December 2022. This indicates the company's ability to cover its short-term liabilities with its current assets. However, there was a slight decline to 2.72 by December 2024, which may be worth monitoring.

The quick ratio, which excludes inventory from current assets, also saw an improvement from 0.26 in March 2020 to 1.52 in December 2023. This suggests the company's ability to meet its short-term obligations without relying on selling inventory. There was a drop to 0.78 by December 2024, possibly indicating the need for closer attention to liquidity management.

The cash ratio, which is the most stringent liquidity measure, showed a similar trend to the quick ratio, indicating an improvement in the company's ability to cover its current liabilities with cash and cash equivalents. ANI Pharmaceuticals Inc's cash position strengthened over time, reaching 1.76 by June 2024.

Overall, ANI Pharmaceuticals Inc has demonstrated strong liquidity positions over the years, with improvements in its current, quick, and cash ratios. However, the slight declines in these ratios towards the end of 2024 suggest the need for continued monitoring of the company's liquidity management.

Additional liquidity measure

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 conversion cycle days 178.56 201.68 181.02 186.46 206.33 236.62 255.19 266.02 277.08 256.69 264.15 264.17 296.37 246.73 283.89 256.31 254.63 268.69 254.80 274.93

The cash conversion cycle of ANI Pharmaceuticals Inc has shown fluctuations over the provided periods, ranging from a high of 296.37 days on December 31, 2021, to a low of 181.02 days on June 30, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

A longer cash conversion cycle indicates that the company takes more time to recover its investments, which may be due to factors such as slow inventory turnover, extended credit terms offered to customers, or delays in receiving payments from customers. On the other hand, a shorter cash conversion cycle implies quicker turnover of investments and faster cash generation.

ANI Pharmaceuticals Inc saw a notable decrease in its cash conversion cycle from September 30, 2023 (236.62 days) to December 31, 2023 (206.33 days), signaling an improvement in efficiency in converting resources into cash flows. The company's cycle further improved to 181.02 days by June 30, 2024, indicating better management of inventory, receivables, and payables during that period.

It is essential for ANI Pharmaceuticals Inc to continuously monitor and manage its cash conversion cycle to ensure optimal working capital management and liquidity. By streamlining processes, negotiating favorable payment terms with suppliers, and improving inventory turnover, the company can potentially reduce its cash conversion cycle further, leading to enhanced cash flow generation and financial performance.