Biogen Inc (BIIB)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	1,049,900	2,287,900	2,617,800	2,898,200	3,419,300	3,675,600	2,646,600	1,749,300	2,261,400	1,541,800	1,742,000	1,217,500	1,331,200	2,224,800	2,384,900	2,591,300	2,913,700	2,343,900	1,723,400	2,243,200
Short-term investments	US$ in thousands	416,800	413,600	4,177,500	2,821,200	2,264,600	2,131,500	2,936,900	2,862,700	2,589,600	2,579,500	1,308,800	1,320,000	1,278,900	1,355,000	1,942,700	1,269,100	1,562,200	2,093,500	1,228,800	1,665,800
Receivables	US$ in thousands	1,664,100	—	—	1,634,400	1,705,000	1,568,800	1,567,600	1,632,000	1,549,400	1,723,000	1,688,000	1,854,300	1,913,800	2,024,900	2,133,600	2,092,600	1,880,500	1,933,500	1,959,600	2,088,900
Total current liabilities	US$ in thousands	3,434,300	5,022,300	3,186,500	3,014,900	3,272,800	3,926,400	5,018,000	3,946,600	4,298,200	4,211,600	3,347,200	3,165,800	3,742,200	3,804,000	3,447,100	4,638,600	4,863,800	4,432,200	3,210,900	3,148,700
Quick ratio		0.91	0.54	2.13	2.44	2.26	1.88	1.43	1.58	1.49	1.39	1.42	1.39	1.21	1.47	1.87	1.28	1.31	1.44	1.53	1.90

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 measures Biogen Inc's ability to meet its short-term financial obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

Biogen's quick ratio has fluctuated over the past eight quarters. In Q4 2023 and Q3 2023, the quick ratio was 1.26 and 1.09, respectively, suggesting a slight improvement in liquidity compared to the previous quarters. However, these ratios are relatively lower than the ratios seen in Q2 2023 and Q1 2023, which were 2.86 and 2.81, respectively. This indicates a potential decrease in the company's ability to cover its short-term obligations with its quick assets.

When comparing the most recent ratios to the same quarter of the prior year, Biogen appears to have experienced a decline in liquidity as the Q4 2023 ratio of 1.26 is lower than the Q4 2022 ratio of 2.58. However, it is important to note that the quick ratio has remained above 1 in all quarters, indicating that Biogen still has sufficient quick assets to cover its current liabilities.

Overall, Biogen's quick ratio trend suggests some fluctuations in liquidity over the periods analyzed, with a potential recent decline compared to the same quarter in the prior year. This may warrant further investigation into the company's management of its current assets and liabilities to ensure adequate liquidity in the future.