Biomarin Pharmaceutical Inc (BMRN)
Liquidity ratios
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
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Current ratio | 2.74 | 2.51 | 2.54 | 4.94 | 4.75 | 4.67 | 5.15 | 5.42 | 4.88 | 4.16 | 4.49 | 5.32 | 5.32 | 4.76 | 3.20 | 3.26 | 2.58 | 2.08 | 3.77 | 4.11 |
Quick ratio | 1.55 | 1.45 | 1.46 | 2.98 | 2.93 | 2.98 | 3.25 | 3.39 | 3.03 | 2.54 | 2.82 | 3.49 | 3.45 | 3.07 | 2.24 | 2.17 | 1.53 | 1.21 | 2.28 | 2.52 |
Cash ratio | 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 | 0.81 | 1.46 | 1.66 |
Biomarin Pharmaceutical Inc's liquidity ratios have shown variability over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has generally been above 2. This indicates that the company has a comfortable level of liquidity to meet its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been above 1 in most periods. This suggests that Biomarin Pharmaceutical Inc can meet its short-term obligations without relying on selling inventory, which is a positive sign.
The cash ratio, the most conservative measure of liquidity that considers only cash and cash equivalents, has also been relatively high, indicating that the company holds a sufficient amount of cash to cover its current liabilities without relying on other assets.
Overall, Biomarin Pharmaceutical Inc's liquidity ratios demonstrate a strong financial position in terms of its ability to meet short-term obligations. However, the variability in ratios over different quarters suggests some fluctuation in the company's liquidity management and may warrant further investigation into the factors driving these changes.
Additional liquidity measure
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
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Cash conversion cycle | days | 904.10 | 869.02 | 823.09 | 804.08 | 770.70 | 756.48 | 720.13 | 721.42 | 698.08 | 677.08 | 648.37 | 543.51 | 568.48 | 576.11 | 600.26 | 751.80 | 756.46 | 772.05 | 748.63 | 749.66 |
The cash conversion cycle for Biomarin Pharmaceutical Inc has shown fluctuations over the past few quarters. The cycle represents the time it takes for the company to convert its investments in raw materials into cash flows from sales. We observe that the cycle has ranged from 543.51 days to 904.10 days over the last six quarters, indicating fluctuations in the efficiency of managing working capital.
In the most recent quarter ending March 31, 2024, Biomarin Pharmaceutical Inc's cash conversion cycle stands at 904.10 days, which is an increase from the previous quarter. This indicates that the company may be taking longer to convert its investments in inventory and accounts receivable into cash.
Analyzing the trend, we notice that the cycle has generally been on an upward trajectory since the third quarter of 2021. This suggests potential challenges in managing inventory levels, collecting accounts receivable efficiently, or converting sales into cash in a timely manner.
It would be important for Biomarin Pharmaceutical Inc to analyze the underlying factors contributing to the lengthening cash conversion cycle and implement strategies to improve working capital management. Efficient management of the cash conversion cycle is crucial for ensuring the company's liquidity, operational efficiency, and overall financial health.