Biogen Inc (BIIB)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	2,375,000	1,049,900	3,419,300	2,261,400	1,331,200
Short-term investments	US$ in thousands	179,700	416,800	2,264,600	2,589,600	1,278,900
Receivables	US$ in thousands	1,404,800	1,664,100	1,705,000	1,549,400	1,913,800
Total current liabilities	US$ in thousands	5,528,800	3,434,300	3,272,800	4,298,200	3,742,200
Quick ratio		0.72	0.91	2.26	1.49	1.21

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,375,000K + $179,700K + $1,404,800K) ÷ $5,528,800K
= 0.72

The quick ratio, also known as the acid-test ratio, provides insight into a company's short-term liquidity position by measuring its ability to meet its current liabilities with its most liquid assets.

- As of December 31, 2020, Biogen Inc's quick ratio was 1.21, indicating that it had $1.21 in liquid assets available for every $1 of current liabilities.
- By December 31, 2021, the quick ratio improved to 1.49, suggesting an enhancement in the company's liquidity position.
- The quick ratio further increased to 2.26 as of December 31, 2022, demonstrating a significant improvement in Biogen's ability to cover its short-term obligations with liquid assets.
- However, there was a decline in the quick ratio to 0.91 by December 31, 2023, which may raise concerns about Biogen's short-term liquidity management.
- This trend continued, with the quick ratio decreasing even further to 0.72 as of December 31, 2024, indicating a potential challenge in the company's ability to meet its current obligations with its readily available assets.

In summary, Biogen Inc's quick ratio fluctuated over the years, showing periods of improvement as well as decline in its short-term liquidity position. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to manage its short-term financial obligations effectively.