Exelixis Inc (EXEL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	237,407	214,784	282,650	160,875	119,073
Total current liabilities	US$ in thousands	394,277	324,359	337,590	204,658	142,746
Quick ratio		3.13	4.70	5.18	6.68	6.80

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($262,994K + $732,308K + $237,407K) ÷ $394,277K
= 3.13

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.

Exelixis Inc's quick ratio has shown a declining trend over the past five years. In 2019, the quick ratio was at its highest at 6.80, indicating a robust liquidity position. However, the ratio has steadily decreased to 6.68 in 2020, 5.18 in 2021, 4.70 in 2022, and further down to 3.13 in 2023.

A quick ratio above 1.0 is generally considered healthy, as it suggests the company can cover its current liabilities with its liquid assets. Despite the downward trend, Exelixis Inc's quick ratio remains comfortably above 1.0 in all years, indicating a strong ability to meet its short-term obligations with liquid assets.

However, the decreasing trend in the quick ratio may raise some concerns about the company's liquidity management and its ability to maintain a strong liquidity position in the future. Further analysis of the underlying reasons for this trend and additional financial metrics would provide a more comprehensive understanding of Exelixis Inc's overall financial health.