Halozyme Therapeutics Inc (HALO)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 6.64 | 5.65 | 7.91 | 1.32 | 6.35 |
| Quick ratio | 2.99 | 4.54 | 7.10 | 1.11 | 5.61 |
| Cash ratio | 2.99 | 2.77 | 6.32 | 0.87 | 4.92 |
Halozyme Therapeutics Inc. has exhibited strong liquidity positions over the past five years, as evidenced by its current, quick, and cash ratios. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has consistently been well above 1, indicating a healthy liquidity position.
The current ratio increased from 2019 to 2020, but the quick and cash ratios dipped in 2020, reflecting a slight decrease in the company's ability to cover short-term liabilities with its most liquid assets. However, there was a significant improvement in all three ratios in 2021, with the current ratio reaching 7.91, the quick ratio at 7.45, and the cash ratio at 6.67, suggesting a substantial increase in the company's ability to meet short-term obligations from its most liquid assets.
In 2022 and 2023, the ratios remained at healthy levels, indicating that Halozyme Therapeutics Inc. continues to maintain strong liquidity positions. The company's ability to cover current liabilities with its current assets, liquid assets, and cash on hand has been consistently robust over the years, providing a good foundation for meeting its short-term financial obligations.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 100.43 | 220.61 | 219.55 | 217.50 | 158.38 |
The cash conversion cycle of Halozyme Therapeutics Inc. has varied over the past five years. In 2023, the company's cash conversion cycle decreased to 322.79 days from 343.75 days in 2022. This indicates that the company took fewer days to convert its investments in inventory and other resources back into cash during the year.
Comparing 2023 to earlier years, the cash conversion cycle was lower than in 2020 when it was significantly higher at 628.36 days, suggesting an improvement in cash conversion efficiency. However, the cycle was longer in 2023 compared to 2019 when it was 294.42 days, which raises some concern regarding the company's liquidity and operational effectiveness in converting its resources into cash.
Overall, the trend of the cash conversion cycle for Halozyme Therapeutics Inc. shows fluctuations over the years, with improvements in certain years and setbacks in others. This highlights the importance of closely monitoring the company's operations and working capital management to ensure efficient cash flow conversion.