Corcept Therapeutics Incorporated (CORT)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 4.39 | 6.89 | 5.60 | 10.07 | 7.91 |
| Quick ratio | 3.93 | 6.41 | 5.31 | 9.86 | 7.62 |
| Cash ratio | 3.52 | 5.95 | 4.70 | 9.28 | 7.10 |
Corcept Therapeutics Inc has maintained strong liquidity ratios over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a slight decline from 2019 to 2023 but remains well above 1, suggesting a healthy liquidity position. The quick ratio, also known as the acid-test ratio, reflects the company's ability to meet its short-term obligations without relying on inventory. Like the current ratio, the quick ratio has also exhibited a decreasing trend but remains robust.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, has followed a similar pattern of decline but still indicates a solid ability to meet short-term obligations solely with cash on hand. Overall, Corcept Therapeutics Inc's liquidity ratios indicate a prudent management of short-term financial obligations and a strong liquidity position that provides a buffer against unforeseen challenges.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 13.95 | 16.29 | 23.46 | 9.79 | 16.45 |
The cash conversion cycle of Corcept Therapeutics Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle stood at -513.26 days, indicating that Corcept was able to convert its inventory into cash and collect receivables more quickly than paying its liabilities. This was a significant decrease from the previous year's cycle of -370.07 days.
Compared to 2021 and 2020, where the cash conversion cycles were -105.15 days and -342.03 days respectively, 2022 and 2023 saw improvements in the efficiency of Corcept's working capital management. The drastic negative cycle in 2023 suggests that the company managed its cash, inventory, and receivables effectively, potentially resulting in improved financial performance.
However, it is essential to note that from 2019 to 2023, there were fluctuations in the cash conversion cycle, indicating possible shifts in the company's operational efficiency and liquidity management. Overall, the negative cash conversion cycles in recent years suggest that Corcept Therapeutics Inc has been successful in optimizing its working capital and managing its cash flow efficiently.