Collegium Pharmaceutical Inc (COLL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	238,947	173,688	186,426	174,116	170,019
Short-term investments	US$ in thousands	147,931	0	—	—	—
Total current liabilities	US$ in thousands	457,915	433,726	279,566	239,451	201,765
Cash ratio		0.84	0.40	0.67	0.73	0.84

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($238,947K + $147,931K) ÷ $457,915K
= 0.84

The cash ratio of Collegium Pharmaceutical Inc has exhibited some fluctuations over the past five years, as depicted in the provided data. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, was 0.71 as of December 31, 2023, indicating that the company had $0.71 of cash and cash equivalents for every dollar of current liabilities.

Comparing this to previous years, we observe a decrease from 0.44 in 2022 to 0.71 in 2023, which suggests an improvement in the company's liquidity position. However, the cash ratio was higher in 2019 and 2020 (0.86 and 0.75, respectively) compared to the latest year, highlighting a potential decline in liquidity over the period.

It is essential to further investigate the reasons behind these fluctuations in the cash ratio to assess Collegium Pharmaceutical Inc's liquidity management practices and financial health accurately.