Halozyme Therapeutics Inc (HALO)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	115,850	118,370	234,195	118,719	147,703
Short-term investments	US$ in thousands	480,224	217,630	128,599	622,203	220,310
Total current liabilities	US$ in thousands	139,100	112,494	130,789	117,147	421,385
Cash ratio		4.29	2.99	2.77	6.32	0.87

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($115,850K + $480,224K) ÷ $139,100K
= 4.29

The cash ratio of Halozyme Therapeutics Inc has shown fluctuations over the past five years, indicating changes in the company's liquidity position.

- As of December 31, 2020, the cash ratio was 0.87, suggesting that the company had only $0.87 in cash and cash equivalents for every $1 of current liabilities. This could indicate potential liquidity concerns or a reliance on other sources of short-term financing.

- The cash ratio significantly improved to 6.32 by December 31, 2021, indicating a stronger liquidity position with $6.32 in cash for every $1 of current liabilities. This substantial increase in liquidity could be due to improved cash management or increased cash reserves.

- By December 31, 2022, the cash ratio decreased to 2.77, indicating a slight decline in liquidity compared to the previous year. This could suggest a change in the company's cash management practices or a shift in its liquidity profile.

- The cash ratio increased slightly to 2.99 by December 31, 2023, showing a modest improvement in liquidity compared to the previous year. This suggests that the company may have focused on maintaining adequate cash reserves relative to its current liabilities.

- As of December 31, 2024, the cash ratio stood at 4.29, indicating a further improvement in liquidity compared to the previous year. This suggests that the company continued to strengthen its cash position relative to its short-term obligations.

Overall, the trend in Halozyme Therapeutics Inc's cash ratio reflects fluctuations in its liquidity position over the years, with notable improvements observed in certain periods. It is essential for investors and stakeholders to monitor these changes to assess the company's ability to meet its short-term financial obligations.