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.