Catalyst Pharmaceuticals Inc (CPRX)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 517,553 | 442,331 | 375,693 | 310,411 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 0 | 0 | 9,876 | 19,424 | 19,821 | 19,956 | 19,980 | 15,971 | 10,041 | 10,003 | 0 | 5,007 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 120,678 | 105,395 | 92,318 | 79,566 | 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 |
| Quick ratio | 4.29 | 4.20 | 4.07 | 3.90 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($517,553K
+ $—K
+ $—K)
÷ $120,678K
= 4.29
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio implies a stronger ability to cover short-term liabilities.
Looking at the quick ratio of Catalyst Pharmaceuticals Inc over the past few years, we can observe some fluctuations. The quick ratio was consistently above 5 from March 31, 2020, to September 30, 2022, indicating a robust liquidity position. This suggests that the company had a comfortable buffer to meet its short-term obligations without relying heavily on inventory.
However, from March 31, 2023, to December 31, 2024, the quick ratio experienced a noticeable decline, dropping below 4. This downward trend may indicate a potential liquidity strain for the company during this period. The quick ratio fell to as low as 1.81 on December 31, 2023, which could suggest a need for closer monitoring of the firm's liquidity position.
By analyzing the quick ratio of Catalyst Pharmaceuticals Inc, stakeholders can assess the company's short-term liquidity and its ability to cover immediate financial commitments. It is essential for management to address any significant decreases in the quick ratio promptly to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024