Corcept Therapeutics Incorporated (CORT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	135,551	66,329	77,617	76,190	31,269
Short-term investments	US$ in thousands	232,670	365,343	145,918	364,506	244,693
Total current liabilities	US$ in thousands	104,505	72,491	47,541	47,494	38,841
Cash ratio		3.52	5.95	4.70	9.28	7.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($135,551K + $232,670K) ÷ $104,505K
= 3.52

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 greater ability to meet short-term obligations using cash on hand alone.

Corcept Therapeutics Inc's cash ratio has fluctuated over the past five years, ranging from 3.92 to 9.42. In 2023, the cash ratio decreased to 3.92 from 6.37 in 2022. This decline may indicate a reduced ability to cover short-term liabilities solely with cash and cash equivalents.

Comparing the 2023 ratio to the ratios in prior years, it is evident that the company had stronger liquidity positions in 2020 and 2019 with cash ratios of 9.42 and 7.26 respectively. This suggests that in those years, Corcept Therapeutics Inc had a higher level of cash relative to its short-term liabilities, indicating better liquidity and financial health.

Overall, a declining trend in the cash ratio may raise concerns about the company's ability to handle short-term obligations using cash resources and may warrant further investigation into the efficiency of its cash management practices.