Biogen Inc (BIIB)

Quick ratio

		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	US$ in thousands	2,375,000	1,699,200	1,908,900	1,074,400	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
Short-term investments	US$ in thousands	179,700	304,700	302,700	329,500	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
Receivables	US$ in thousands	1,404,800	-2,400	-2,400	-2,400	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
Total current liabilities	US$ in thousands	5,528,800	5,425,000	3,108,200	3,222,800	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
Quick ratio		0.72	0.37	0.71	0.43	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

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 of Biogen Inc has experienced fluctuations over the past few years. It started at a healthy level of 1.28 as of March 31, 2020, indicating that the company had enough liquid assets to cover its current liabilities.

The ratio improved significantly to 2.26 by December 31, 2022, and continued to increase to 2.44 by March 31, 2023, showing a strong ability to meet short-term obligations.

However, there was a sharp decline in the quick ratio to 0.37 by September 30, 2024, signaling a potential liquidity issue as the company may struggle to meet its short-term liabilities with its current liquid assets.

Overall, while the quick ratio of Biogen Inc has shown some volatility, it is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations effectively.