Exelixis Inc (EXEL)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	217,374	258,346	198,459	259,561	262,994	396,859	464,480	540,597	501,195	675,286	627,000	723,269	647,169	567,325	492,462	370,209	319,217	334,046	527,143	357,340
Short-term investments	US$ in thousands	893,902	930,815	803,540	703,695	732,308	706,528	802,335	772,536	807,273	871,706	907,938	847,060	819,905	835,406	854,171	815,285	887,319	853,835	685,895	597,028
Total current liabilities	US$ in thousands	403,769	394,346	345,703	373,010	394,277	376,816	339,617	327,597	324,359	301,733	304,521	289,079	337,590	269,508	255,326	213,337	204,658	201,343	142,681	140,477
Cash ratio		2.75	3.02	2.90	2.58	2.52	2.93	3.73	4.01	4.03	5.13	5.04	5.43	4.35	5.20	5.27	5.56	5.90	5.90	8.50	6.79

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($217,374K + $893,902K) ÷ $403,769K
= 2.75

Exelixis Inc's cash ratio has shown fluctuations over the reported periods. The cash ratio indicates the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio is generally preferable as it suggests a stronger liquidity position.

Looking at the data provided, Exelixis Inc's cash ratio ranged from a high of 8.50 in June 2020 to a low of 2.52 in December 2023, indicating variability in the company's liquidity position over time. The cash ratio declined steadily from June 2020 to December 2020, showing some improvement in the first quarter of 2021 before experiencing fluctuations in subsequent periods.

The downward trend observed in the cash ratio from June 2020 to December 2024 may raise concerns about the company's ability to meet its short-term obligations solely with cash and cash equivalents. Investors and analysts should closely monitor Exelixis Inc's liquidity position, as a sustained low cash ratio may indicate a potential risk of financial distress or difficulty in meeting immediate financial obligations.