Corcept Therapeutics Incorporated (CORT)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	471,602	458,636	498,707	381,387	524,247
Total current liabilities	US$ in thousands	140,773	104,505	81,588	6,908	10,554
Current ratio		3.35	4.39	6.11	55.21	49.67

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $471,602K ÷ $140,773K
= 3.35

The current ratio of Corcept Therapeutics Incorporated has shown a declining trend over the past few years, dropping from 49.67 in December 2020 to 3.35 in December 2024. This indicates a significant decrease in the company's ability to cover its short-term liabilities with its current assets.

A current ratio above 1 is generally considered healthy, as it suggests the company has more current assets than current liabilities to meet its short-term obligations. In the case of Corcept Therapeutics, the current ratios above 1 in the earlier years demonstrated a strong ability to pay off its short-term debts. However, the sharp decrease in current ratio in the latest years raises concerns about the company's liquidity position.

With a current ratio of 3.35 as of December 31, 2024, Corcept Therapeutics may potentially face challenges in meeting its current obligations using its current assets alone. It may indicate inefficiencies in managing its working capital or increasing short-term liabilities relative to current assets. Investors and stakeholders may need to closely monitor the company's liquidity position and assess the reasons behind the declining trend in the current ratio to understand the financial health and sustainability of Corcept Therapeutics.