Catalyst Pharmaceuticals Inc (CPRX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 219,329 | 320,806 | 210,106 | 159,244 | 111,364 |
| Total current liabilities | US$ in thousands | 76,063 | 57,588 | 27,063 | 22,756 | 24,099 |
| Current ratio | 2.88 | 5.57 | 7.76 | 7.00 | 4.62 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $219,329K ÷ $76,063K
= 2.88
The current ratio of Catalyst Pharmaceuticals Inc has exhibited fluctuations over the past five years. The ratio decreased from 7.00 in 2020 to 2.88 in 2023, indicating a reduction in the company's ability to cover its short-term obligations with current assets. However, it remained above 1, indicating that the company is still able to meet its short-term liabilities using its current assets.
The significant decrease in the current ratio from 7.00 in 2020 to 2.88 in 2023 may suggest a potential liquidity concern or a shift in the company's asset structure. Investors and creditors may view this decrease as a signal of decreased short-term solvency. Generally, a higher current ratio is preferred as it signifies a stronger liquidity position.
It would be essential for management to assess the reasons behind this decline and take measures to manage their short-term obligations effectively. Additionally, comparing the current ratio with industry benchmarks and peer companies would provide further insights into Catalyst Pharmaceuticals Inc's liquidity position.
Peer comparison
Dec 31, 2023