Biomarin Pharmaceutical Inc (BMRN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	755,127	724,531	587,276	649,158	437,446
Short-term investments	US$ in thousands	318,683	567,006	426,599	416,228	316,361
Total current liabilities	US$ in thousands	1,177,020	588,884	546,497	492,548	932,503
Cash ratio		0.91	2.19	1.86	2.16	0.81

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($755,127K + $318,683K) ÷ $1,177,020K
= 0.91

The cash ratio of Biomarin Pharmaceutical Inc has shown fluctuations over the past five years. As of December 31, 2023, the cash ratio stands at 0.91, a decrease from the previous year. This suggests that the company may have a lower level of cash and cash equivalents relative to its current liabilities, indicating a potential liquidity concern.

In comparison, the cash ratio was significantly higher in 2022 and 2020, at 2.19 and 2.16 respectively, indicating a stronger ability to cover short-term obligations with available cash on hand. However, in 2021 and 2019, the cash ratio was relatively lower at 1.86 and 0.81, signaling potential liquidity challenges during those periods.

Overall, the downward trend in the cash ratio from 2022 to 2023 warrants further investigation into Biomarin Pharmaceutical Inc's liquidity position and its ability to meet short-term financial obligations.