Dynavax Technologies Corporation (DVAX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	150,279	202,004	436,189	32,073	39,884
Short-term investments	US$ in thousands	592,023	422,391	109,811	132,927	111,216
Total current liabilities	US$ in thousands	62,195	150,074	556,402	77,411	53,047
Cash ratio		11.94	4.16	0.98	2.13	2.85

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($150,279K + $592,023K) ÷ $62,195K
= 11.94

The cash ratio of Dynavax Technologies Corp. has displayed a notable upward trend over the past five years, indicating an improvement in the company's liquidity position.

In particular, the cash ratio has grown from 2.99 in 2019 to 12.24 in 2023, reflecting a substantial increase in the company's ability to cover its current liabilities with its available cash and cash equivalents. This suggests that Dynavax Technologies Corp. has built a stronger liquidity buffer over the years, which is a positive sign for its financial health.

The significant rise in the cash ratio signifies that the company has ample liquid assets to meet its short-term obligations, such as debt payments and operational expenses. This enhanced liquidity position may provide Dynavax Technologies Corp. with greater financial flexibility and resilience to navigate unforeseen challenges or capitalize on opportunities in the future.

Overall, the upward trajectory of Dynavax Technologies Corp.'s cash ratio indicates an improved liquidity position and a strengthened ability to meet its short-term financial obligations, which may enhance investor confidence in the company's financial stability.