Collegium Pharmaceutical Inc (COLL)

Cash ratio

		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	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	238,947	258,532	283,749	269,480	173,688	134,126	122,722	106,698	186,426	193,241	202,771	182,790	174,116	165,423	145,678	116,178	170,019	153,838	148,713	134,910
Short-term investments	US$ in thousands	147,931	92,066	89,419	—	0	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	457,915	464,612	435,058	412,702	433,726	414,497	415,094	373,573	279,566	268,973	226,843	230,168	239,451	242,437	252,111	244,374	201,765	201,483	196,272	188,885
Cash ratio		0.84	0.75	0.86	0.65	0.40	0.32	0.30	0.29	0.67	0.72	0.89	0.79	0.73	0.68	0.58	0.48	0.84	0.76	0.76	0.71

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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Looking at the trend of Collegium Pharmaceutical Inc's cash ratio over the past eight quarters, we can see fluctuations in the ratio. In Q4 2023, the cash ratio stood at 0.71, showing an improvement from the previous quarter's 0.69. This suggests that the company had a higher proportion of cash and cash equivalents relative to its current liabilities in Q4 2023.

Comparing the latest ratio to the same period in the previous year, we observe significant growth as the Q4 2022 cash ratio was 0.44. This indicates an enhancement in Collegium Pharmaceutical Inc's liquidity position over the year.

Overall, the upward trend in the cash ratio signifies an improvement in the company's ability to meet its short-term obligations using its available cash resources. It's essential to monitor this ratio consistently to assess the company's liquidity health and financial stability.