Biomarin Pharmaceutical Inc (BMRN)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 942,842 755,127 724,531 587,276 649,158
Short-term investments US$ in thousands 194,864 318,683 567,006 426,599 416,228
Total current liabilities US$ in thousands 606,988 1,177,020 588,884 546,497 492,548
Cash ratio 1.87 0.91 2.19 1.86 2.16

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($942,842K + $194,864K) ÷ $606,988K
= 1.87

The cash ratio of Biomarin Pharmaceutical Inc has varied over the years based on the provided data. In December 2020, the cash ratio was 2.16, indicating that the company had $2.16 in highly liquid assets for every $1 of current liabilities. This ratio decreased to 1.86 by December 2021, suggesting a potential decrease in the company's ability to cover its short-term obligations with cash and cash equivalents.

However, the cash ratio improved in the following years, reaching 2.19 by December 2022. This increase indicates a better liquidity position for the company compared to the previous year. Subsequently, by December 2023, the cash ratio declined significantly to 0.91, signaling a potential liquidity challenge for Biomarin Pharmaceutical Inc in meeting its short-term financial obligations.

In the most recent year, December 2024, the cash ratio improved again to 1.87, indicating a better ability to cover short-term liabilities with available cash. Overall, fluctuations in the cash ratio of Biomarin Pharmaceutical Inc suggest varying levels of liquidity and the company's ability to manage short-term financial commitments over the years.