Biogen Inc (BIIB)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,049,900	3,419,300	2,261,400	1,331,200	2,913,700
Short-term investments	US$ in thousands	416,800	2,264,600	2,589,600	1,278,900	1,562,200
Total current liabilities	US$ in thousands	3,434,300	3,272,800	4,298,200	3,742,200	4,863,800
Cash ratio		0.43	1.74	1.13	0.70	0.92

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,049,900K + $416,800K) ÷ $3,434,300K
= 0.43

The cash ratio of Biogen Inc has shown fluctuations over the last five years, ranging from 0.65 to 1.93. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

In 2023, the cash ratio decreased to 0.65 from the previous year's value of 1.93. This significant drop may suggest a decrease in the company's cash reserves relative to its short-term liabilities, which could potentially impact its liquidity position.

It is essential for Biogen Inc to monitor its cash position closely and ensure that it maintains an adequate level of liquidity to meet its short-term obligations. Additionally, management may need to explore strategies to improve cash flows and effectively manage working capital to support the company's financial health in the future.