Biomarin Pharmaceutical Inc (BMRN)

Cash 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 and cash equivalents US$ in thousands 942,842 675,448 972,150 746,996 755,127 785,414 694,381 580,074 724,531 761,515 619,802 605,440 587,276 617,143 641,533 667,313 649,158 1,015,680 818,900 476,632
Short-term investments US$ in thousands 194,864 254,996 252,201 299,584 318,683 340,431 476,577 572,017 567,006 512,253 489,945 450,798 426,599 462,333 481,864 420,178 416,228 489,998 561,472 381,764
Total current liabilities US$ in thousands 606,988 715,658 1,067,340 1,087,900 1,177,020 1,163,220 597,231 598,231 588,884 521,020 464,727 490,418 546,497 514,898 443,344 430,035 492,548 854,693 813,302 820,470
Cash ratio 1.87 1.30 1.15 0.96 0.91 0.97 1.96 1.93 2.19 2.44 2.39 2.15 1.86 2.10 2.53 2.53 2.16 1.76 1.70 1.05

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 fluctuated over the past few years, indicating changes in the company's liquidity position. The cash ratio measures the firm's ability to cover its short-term liabilities with its cash and cash equivalents.

From March 31, 2020, to December 31, 2022, the cash ratio steadily increased from 1.05 to 2.19, reflecting an improvement in the company's liquidity and its ability to meet its short-term obligations comfortably. This upward trend suggests that Biomarin Pharmaceutical had sufficient cash reserves to cover its current liabilities during this period.

However, from March 31, 2023, to December 31, 2024, the cash ratio declined from 1.93 to 1.87. This decrease may indicate a slight deterioration in the company's liquidity position or a change in its cash management practices during this period. The cash ratio dropping below 1 in the last quarter of 2023 and the first quarter of 2024 to 0.97 and 0.91 respectively is a point of concern as it suggests that Biomarin Pharmaceutical may have had insufficient cash on hand to cover its short-term liabilities during those periods.

Overall, the cash ratio trend for Biomarin Pharmaceutical Inc indicates that the company has maintained a relatively strong liquidity position, with some fluctuations observed over the years. Monitoring the cash ratio is crucial to assess the company's short-term financial health and ability to meet its obligations promptly.