Catalyst Pharmaceuticals Inc (CPRX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	137,636	298,395	171,445	130,237	89,512
Short-term investments	US$ in thousands	0	0	19,821	10,041	5,007
Total current liabilities	US$ in thousands	76,063	57,588	27,063	22,756	24,099
Cash ratio		1.81	5.18	7.07	6.16	3.92

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($137,636K + $0K) ÷ $76,063K
= 1.81

Based on the data provided for Catalyst Pharmaceuticals Inc's cash ratio over the past five years, there has been a noticeable fluctuation in the company's ability to cover its current liabilities with its available cash.

In 2019, the cash ratio stood at 3.92, indicating that the company had sufficient cash on hand to cover almost 4 times its current liabilities. However, this ratio decreased to 6.16 in 2020, showing a slight decline in the company's liquidity position.

There was a significant increase in the cash ratio to 7.07 in 2021, demonstrating a strong ability to cover current liabilities with cash on hand. This high ratio suggests that Catalyst Pharmaceuticals Inc had a robust liquidity position during that year.

The cash ratio peaked at 5.18 in 2022, signifying a slight decrease from the previous year but still indicating a healthy liquidity position for the company.

The most recent data for 2023 shows a further decrease in the cash ratio to 1.81. This lower ratio might raise concerns about the company's ability to cover its current liabilities with available cash compared to the previous years.

Overall, while Catalyst Pharmaceuticals Inc has shown fluctuations in its cash ratio over the past five years, it is essential to closely monitor the trend to ensure the company maintains a healthy liquidity position to meet its short-term obligations.