Biogen Inc (BIIB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	1,664,100	1,705,000	1,549,400	1,913,800	1,880,500
Total current liabilities	US$ in thousands	3,434,300	3,272,800	4,298,200	3,742,200	4,863,800
Quick ratio		0.91	2.26	1.49	1.21	1.31

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,049,900K + $416,800K + $1,664,100K) ÷ $3,434,300K
= 0.91

The quick ratio of Biogen Inc has exhibited fluctuations over the past five years. The quick ratio was 1.26 at the end of 2023, indicating that the company had $1.26 of liquid assets available to cover each $1 of current liabilities. This represents a decrease from the prior year when the quick ratio was 2.58.

A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations. Although the quick ratio of 1.26 in 2023 is above the threshold of 1, it has decreased significantly from the previous year. This might suggest a potential decrease in the company's ability to meet its short-term liabilities using its most liquid assets.

It is important to assess the reasons behind this decrease in the quick ratio and analyze the company's liquidity position comprehensively to understand the implications for its financial health and ability to meet its short-term obligations effectively.