Exelixis Inc (EXEL)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.63 | 3.34 | 4.99 | 5.43 | 7.06 |
| Quick ratio | 3.41 | 3.13 | 4.70 | 5.18 | 6.68 |
| Cash ratio | 2.75 | 2.52 | 4.03 | 4.35 | 5.90 |
Exelixis Inc's liquidity ratios indicate its ability to meet short-term obligations efficiently. The current ratio, which measures the company's ability to cover current liabilities with current assets, has shown a decreasing trend from 7.06 in 2020 to 3.63 in 2024. Although the current ratio remains above 1, indicating that the company can meet its short-term obligations, the decline suggests a potential decrease in liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased from 6.68 in 2020 to 3.41 in 2024. This indicates a diminishing ability to cover immediate liabilities without relying on inventory liquidation.
Lastly, the cash ratio, which provides insight into the company's ability to cover current liabilities with cash and cash equivalents, has experienced a decline from 5.90 in 2020 to 2.75 in 2024. This decreasing trend may signal a reduced capacity to settle short-term obligations solely with cash on hand.
In summary, Exelixis Inc's liquidity ratios have shown a consistent decline over the years, raising concerns about its short-term liquidity position and ability to meet obligations promptly. Investors and stakeholders should continue monitoring these ratios to assess the company's liquidity risk.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 36.02 | 37.59 | 49.11 | 74.49 | 56.52 |
The cash conversion cycle of Exelixis Inc has exhibited fluctuating trends over the past five years. Starting at 56.52 days as of December 31, 2020, the company experienced an increase to 74.49 days by December 31, 2021. However, the trend seems to have reversed as the cash conversion cycle decreased to 49.11 days by December 31, 2022, and further improved to 37.59 days a year later. The most recent data point shows a continuation of this positive trend, with the cash conversion cycle standing at 36.02 days as of December 31, 2024. Overall, the decreasing trend indicates that Exelixis Inc has been managing its cash flows more efficiently and effectively converting its investments into cash.