Collegium Pharmaceutical Inc (COLL)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	179,525	181,851	167,479	179,127	183,119	195,402	197,505	166,345	105,844	148,999	90,098	93,156	83,320	76,466	81,195	85,427	72,953	84,380	81,279	85,139
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
Quick ratio		1.24	1.15	1.24	1.09	0.82	0.80	0.77	0.73	1.05	1.27	1.29	1.20	1.08	1.00	0.90	0.82	1.20	1.18	1.17	1.16

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($238,947K + $147,931K + $179,525K) ÷ $457,915K
= 1.24

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Collegium Pharmaceutical Inc, the quick ratio has been fluctuating over the past eight quarters, ranging from a low of 0.76 to a high of 1.18.

A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, which suggests a healthy liquidity position. Collegium Pharmaceutical Inc has generally maintained quick ratios above 1 in recent quarters, with the highest quick ratio of 1.18 in Q2 2023 and the lowest of 0.76 in Q1 2022.

The trend of increasing quick ratios from Q1 2022 to Q2 2023 indicates an improvement in the company's ability to cover its short-term obligations with liquid assets. This suggests that Collegium Pharmaceutical Inc has been managing its liquidity effectively and may be better positioned to handle unexpected financial challenges in the short term.

Overall, Collegium Pharmaceutical Inc's quick ratio analysis indicates a generally sound liquidity position, with fluctuations over time that reflect changes in the company's ability to meet its short-term obligations with liquid assets. It will be important to continue monitoring the quick ratio in future quarters to assess the company's ongoing liquidity management.