Halozyme Therapeutics Inc (HALO)

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	118,370	274,227	221,165	96,383	234,195	147,159	90,932	117,835	118,719	491,683	446,966	499,450	147,703	65,741	133,606	104,820	120,179	59,202	67,041	60,595
Short-term investments	US$ in thousands	217,630	209,055	127,110	179,225	128,599	118,425	118,428	668,305	622,203	324,237	308,343	264,856	220,310	280,965	251,840	263,363	301,083	178,796	220,424	268,122
Total current liabilities	US$ in thousands	112,494	115,185	116,393	91,919	130,789	109,384	199,512	111,691	117,147	113,153	114,251	107,421	421,385	26,976	26,073	42,002	85,637	108,041	135,417	138,662
Cash ratio		2.99	4.20	2.99	3.00	2.77	2.43	1.05	7.04	6.32	7.21	6.61	7.12	0.87	12.85	14.78	8.77	4.92	2.20	2.12	2.37

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($118,370K + $217,630K) ÷ $112,494K
= 2.99

The cash ratio of Halozyme Therapeutics Inc. has shown variability over the past eight quarters, ranging from a low of 1.28 in Q2 2022 to a high of 7.41 in Q1 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In this case, the cash ratio has generally been above 3 in the recent quarters, indicating that Halozyme Therapeutics Inc. has maintained a healthy level of cash reserves relative to its short-term liabilities. The significant increase in the cash ratio in Q1 2022 to 7.41 suggests a substantial increase in cash holdings or a decrease in short-term liabilities during that period.

Overall, the trend in Halozyme Therapeutics Inc.'s cash ratio demonstrates a level of prudence in managing its liquidity position, ensuring the company's ability to meet its short-term financial obligations.