Exelixis Inc (EXEL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.34 | 3.83 | 4.68 | 5.00 | 4.99 | 6.10 | 6.08 | 6.37 | 5.43 | 6.17 | 6.24 | 6.72 | 7.06 | 6.99 | 9.77 | 8.09 | 7.08 | 6.89 | 8.64 | 7.56 |
| Quick ratio | 3.13 | 3.59 | 4.42 | 4.72 | 4.70 | 5.84 | 5.81 | 6.09 | 5.18 | 5.87 | 5.95 | 6.39 | 6.68 | 6.72 | 9.35 | 7.77 | 6.80 | 6.60 | 8.30 | 7.25 |
| 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 |
Exelixis Inc's liquidity ratios have shown a consistently strong trend over the past five years. The current ratio, which measures the firm's ability to meet short-term obligations with its current assets, has been consistently above 3. This indicates that Exelixis has a healthy level of current assets to cover its current liabilities.
Similarly, the quick ratio, also known as the acid-test ratio, has been consistently above 3, showing that the company has a strong ability to meet its short-term liabilities without relying on inventory. This implies that Exelixis has a solid cash position relative to its current liabilities.
The cash ratio, which is the most conservative liquidity ratio, has also shown a positive trend, consistently above 2. This suggests that Exelixis has a sufficient level of cash and cash equivalents to cover its current liabilities, providing a further cushion for short-term obligations.
Overall, Exelixis Inc's liquidity ratios reflect a robust financial position with ample short-term assets to cover its short-term liabilities, indicating a healthy level of liquidity and financial stability.
Additional liquidity measure
| 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 conversion cycle | days | 37.59 | 50.14 | 51.26 | 49.51 | 49.11 | 45.06 | 65.22 | 54.72 | 74.49 | 55.55 | 58.43 | 73.75 | 56.17 | 24.93 | 53.77 | 51.33 | 46.79 | 72.30 | 39.31 | 46.85 |
The cash conversion cycle of Exelixis Inc has shown fluctuations over the periods analyzed. The cycle measures the number of days it takes for a company to convert its resources into cash inflows. A shorter cash conversion cycle indicates efficiency in managing working capital.
In the recent period, the cash conversion cycle has decreased from 50.14 days in September 2023 to 37.59 days in December 2023, signaling an improvement in the company's ability to convert resources into cash. However, compared to previous periods, the cycle has been relatively longer.
The company experienced its longest cash conversion cycle in June 2022 at 65.22 days, suggesting delays in converting resources into cash during that period. Conversely, the shortest cycle was observed in September 2020 at 24.93 days, implying more efficient working capital management at that time.
Overall, monitoring the cash conversion cycle is crucial for evaluating the efficiency of Exelixis Inc in managing its working capital and optimizing cash flows. The company should aim to strike a balance between inventory management, accounts receivable collection, and accounts payable payments to streamline its cash conversion cycle and enhance overall financial performance.