Dynavax Technologies Corporation (DVAX)

Dynavax Technologies Corp. has shown a consistent improvement in its liquidity ratios over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been increasing steadily, reflecting a strong liquidity position. The ratio of 13.81 in 2023 indicates that the company has $13.81 in current assets for every dollar of current liabilities.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend. With a quick ratio of 12.96 in 2023, the company appears to have significant liquid assets to cover its short-term liabilities quickly.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also been on the rise. In 2023, Dynavax Technologies Corp. had a cash ratio of 12.24, suggesting a strong ability to meet immediate obligations using cash resources.

Overall, the liquidity ratios indicate that Dynavax Technologies Corp. has significantly improved its liquidity position over the years, demonstrating a robust ability to meet its short-term financial commitments and potentially invest in growth opportunities.

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Additional liquidity measure

The cash conversion cycle of Dynavax Technologies Corp. has fluctuated significantly over the past five years. In 2023, the company's cash conversion cycle increased to 419.54 days from 152.80 days in 2022, indicating a longer time taken to convert its investments in inventory and receivables into cash. This could be a potential concern as it may tie up the company's funds for an extended period.

The improvement in the cash conversion cycle from 1,761.98 days in 2020 to 152.80 days in 2022 suggests that the company was able to manage its working capital more efficiently during this period. However, the sharp increase in 2023 indicates a reversal in this trend.

It is important for Dynavax Technologies Corp. to closely monitor its cash conversion cycle as it directly impacts the company's liquidity and financial health. A shorter cash conversion cycle indicates that the company is able to generate cash more quickly from its operations, while a longer cycle may signify operational inefficiencies or difficulties in managing working capital effectively.