Catalyst Pharmaceuticals Inc (CPRX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	53,514	10,439	6,619	5,987	10,537
Total current liabilities	US$ in thousands	76,063	57,588	27,063	22,756	24,099
Quick ratio		2.51	5.36	7.31	6.43	4.36

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($137,636K + $0K + $53,514K) ÷ $76,063K
= 2.51

The quick ratio for Catalyst Pharmaceuticals Inc has shown variations over the past five years. The trend indicates a strong liquidity position as the ratio has consistently been above 1.0, indicating the company's ability to meet its short-term obligations using its most liquid assets.

The ratio peaked in 2021 at 7.31, reflecting a significant amount of liquid assets available to cover short-term liabilities. This demonstrates strong financial health and the ability to weather any potential short-term financial challenges.

In 2023, the quick ratio decreased to 2.51, which is still above 1.0 and indicates that the company has an adequate level of liquidity to cover its short-term liabilities. However, the lower ratio compared to previous years may suggest a slight decline in liquidity or changes in the composition of current assets.

Overall, Catalyst Pharmaceuticals Inc has maintained a solid quick ratio throughout the years, providing a positive signal of its ability to manage short-term financial obligations effectively.