Exelixis Inc (EXEL)

Exelixis Inc's liquidity ratios have shown a declining trend over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, decreased from 7.08 in 2019 to 3.34 in 2023. This indicates a potential weakening in the company's liquidity position.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also declined from 6.80 in 2019 to 3.13 in 2023. The decreasing trend in both the current and quick ratios suggests a reduction in Exelixis Inc's ability to cover its short-term liabilities without relying on inventory.

The cash ratio, which assesses the ability to pay off current liabilities using only cash and cash equivalents, also exhibited a decreasing trend from 5.97 in 2019 to 2.52 in 2023. This indicates a lower level of immediate liquidity available to the company without relying on other current assets.

Overall, Exelixis Inc's liquidity ratios suggest a gradual decline in its ability to meet short-term obligations with its current assets over the past five years. The company may need to monitor its liquidity position closely and take appropriate measures to improve its short-term financial health.

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Additional liquidity measure

The cash conversion cycle of Exelixis Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 37.59 days, a significant improvement from 2022 when it was 49.11 days. This indicates that the company is managing its cash flow more efficiently in 2023 by decreasing the time it takes to convert its investments in raw materials into cash received from sales.

Compared to 2021 when the cash conversion cycle was 74.49 days, 2023 reflects a substantial improvement, suggesting that Exelixis Inc has become more effective in managing its working capital and inventory turnover. However, it is worth noting that in 2020, the company's cash conversion cycle was 56.52 days, which was lower than in 2021 but higher than in 2023, indicating some fluctuations in the efficiency of the company's cash conversion process.

Furthermore, looking back to 2019, the company had a cash conversion cycle of 46.73 days, suggesting that in 2023, Exelixis Inc has improved its cash flow management compared to four years ago.

Overall, the trend in Exelixis Inc's cash conversion cycle indicates improvements in recent years, with the company becoming more efficient in managing its working capital and turning investments into cash. By reducing the cash conversion cycle, the company is enhancing its financial performance and liquidity position.