Catalyst Pharmaceuticals Inc (CPRX)

Cash 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 and cash equivalents	US$ in thousands	137,636	120,971	178,787	148,247	298,395	256,065	210,912	178,372	171,445	154,836	135,295	127,328	130,237	117,106	115,052	101,751	89,512	44,983	23,418	19,082
Short-term investments	US$ in thousands	0	0	—	—	0	0	9,876	19,424	19,821	19,956	19,980	15,971	10,041	10,003	0	5,007	5,007	31,562	36,503	26,551
Total current liabilities	US$ in thousands	76,063	57,806	52,503	56,709	57,588	44,681	22,488	22,938	27,063	20,614	16,135	14,436	22,756	18,232	20,210	17,636	24,099	17,982	14,152	9,026
Cash ratio		1.81	2.09	3.41	2.61	5.18	5.73	9.82	8.62	7.07	8.48	9.62	9.93	6.16	6.97	5.69	6.05	3.92	4.26	4.23	5.06

December 31, 2023 calculation

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

The cash ratio of Catalyst Pharmaceuticals Inc has shown fluctuations over the periods provided. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

The trend indicates a generally healthy liquidity position, as the cash ratio has consistently remained above 1, indicating that the company has more than enough cash to cover its short-term obligations in each period.

In recent periods, the cash ratio has been above 2, reaching as high as 9.82 in June 2022, which reflects a strong ability to meet short-term financial obligations with cash on hand. This signifies a robust liquidity position, indicating that Catalyst Pharmaceuticals Inc has a comfortable buffer of cash reserves to navigate any unforeseen financial challenges.

However, it is important to note that a very high cash ratio could also suggest that the company is not efficiently utilizing its cash resources and may be missing out on potential investment opportunities that could generate higher returns.

Overall, based on the cash ratio data provided, Catalyst Pharmaceuticals Inc appears to have a solid liquidity position, reflecting its ability to meet short-term obligations with its available cash resources.