Dynavax Technologies Corporation (DVAX)

Dynavax Technologies Corporation's liquidity ratios show fluctuations over the years.

1. Current Ratio:
- The current ratio indicates the company's ability to meet short-term obligations with its current assets.
- In 2020, the current ratio was healthy at 2.95, suggesting the company had more than enough current assets to cover its short-term liabilities.
- However, there was a significant decline in 2021 to 1.09, indicating a potential liquidity issue as current assets were barely enough to cover current liabilities.
- The ratio improved in 2022 and further in 2023 and 2024, reaching 13.81 and 10.80 respectively, highlighting a considerable improvement in the company's liquidity position.

2. Quick Ratio:
- The quick ratio is a more stringent measure of liquidity as it excludes inventory from current assets.
- Similar to the current ratio, the quick ratio experienced fluctuations over the years.
- In 2020, the quick ratio was 2.13, suggesting a healthy liquidity position.
- There was a decline in 2021 to 0.98, indicating potential challenges in meeting short-term obligations without relying on inventory.
- The quick ratio improved significantly in 2022, 2023, and 2024 to 4.16, 11.94, and 9.08 respectively, reflecting a substantial improvement in the company's ability to cover immediate liabilities with liquid assets.

3. Cash Ratio:
- The cash ratio is the most stringent measure of liquidity, considering only cash and cash equivalents to cover short-term liabilities.
- The cash ratio for Dynavax Technologies Corporation followed a similar pattern to the quick ratio, with fluctuations over the years.
- In 2020 and 2021, the cash ratio was 2.13 and 0.98 respectively, indicating a decline in the company's ability to cover short-term obligations with cash alone.
- However, there was a significant improvement in 2022, 2023, and 2024, reaching 4.16, 11.94, and 9.08 respectively, showing a strengthened capacity to meet immediate liabilities with cash reserves.

In conclusion, Dynavax Technologies Corporation improved its liquidity position significantly from 2021 onwards, as evidenced by the increasing current, quick, and cash ratios. This improvement suggests a higher ability to meet short-term obligations and better financial health overall.

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Additional liquidity measure

Dynavax Technologies Corporation's cash conversion cycle has shown variations over the years. In 2020, the company had a significantly high cash conversion cycle of 1,671.21 days, indicating a prolonged period between paying for raw materials and receiving cash from sales. However, in subsequent years, there was a notable improvement in efficiency as the cycle decreased to 128.98 days in 2021, 82.77 days in 2022, and further to 387.72 days in 2023. Nonetheless, the cycle increased again to 517.13 days by the end of 2024, suggesting a lengthening of the time it takes for the company to convert its investments in inventory and other resources back into cash through sales. Overall, Dynavax Technologies Corporation should focus on managing its working capital effectively to optimize its cash conversion cycle and enhance financial performance.