Exelixis Inc (EXEL)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	266,501	242,317	369,789	373,937
Short-term investments	US$ in thousands	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	585,742	518,350	452,328	425,713
Total current liabilities	US$ in thousands	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	142,746	141,069	110,796	125,132
Cash ratio		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	5.97	5.39	7.42	6.39

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 for Exelixis Inc has shown some fluctuation over the past five years, with the ratio ranging from 2.52 to 8.50. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend indicates that the company has generally maintained a healthy level of cash reserves relative to its short-term obligations. A higher cash ratio is typically seen as favorable, as it suggests that the company has sufficient liquid assets to meet its immediate financial commitments if needed.

Exelixis Inc's cash ratio has shown an increasing trend from 2019 to 2020, peaking at 8.50 in the second quarter of 2020, before experiencing some fluctuations over the subsequent quarters. While the ratio has dipped below the peak levels in recent quarters, it still remains relatively strong and indicates that the company is in a good position to meet its short-term obligations.

Overall, the cash ratio analysis suggests that Exelixis Inc has been effectively managing its liquidity and maintaining a prudent level of cash reserves to support its operations and financial stability.