Exelixis Inc (EXEL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	262,994	501,195	647,169	319,217	266,501
Short-term investments	US$ in thousands	732,308	807,273	819,905	887,319	585,742
Total current liabilities	US$ in thousands	394,277	324,359	337,590	204,658	142,746
Cash ratio		2.52	4.03	4.35	5.90	5.97

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($262,994K + $732,308K) ÷ $394,277K
= 2.52

The cash ratio of Exelixis Inc has shown a declining trend over the past five years. The ratio was 2.52 as of December 31, 2023, compared to 4.03 in 2022, 4.35 in 2021, 5.90 in 2020, and 5.97 in 2019.

The decreasing cash ratio indicates that Exelixis Inc has a lower level of cash and cash equivalents relative to its current liabilities. This may suggest that the company's liquidity position has weakened over the years, as it has less cash available to cover its short-term obligations.

It is important for investors and stakeholders to monitor this trend closely, as a declining cash ratio can indicate potential cash flow challenges and the need for careful management of working capital to ensure the company's financial stability and ability to meet its short-term obligations.