Halozyme Therapeutics Inc (HALO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 118,370 | 234,195 | 118,719 | 147,703 | 120,179 |
| Short-term investments | US$ in thousands | 217,630 | 128,599 | 622,203 | 220,310 | 301,083 |
| Receivables | US$ in thousands | — | 231,072 | 90,975 | 97,730 | 59,442 |
| Total current liabilities | US$ in thousands | 112,494 | 130,789 | 117,147 | 421,385 | 85,637 |
| Quick ratio | 2.99 | 4.54 | 7.10 | 1.11 | 5.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($118,370K
+ $217,630K
+ $—K)
÷ $112,494K
= 2.99
The quick ratio of Halozyme Therapeutics Inc. has been fluctuating over the past five years, with a noticeable increase from 2019 to 2021, followed by a decrease in 2022, and then another sharp increase in 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The quick ratio values indicate that Halozyme Therapeutics Inc. had a very strong liquidity position in 2021, with a quick ratio of 7.45, suggesting the company had $7.45 in liquid assets available to cover $1 of current liabilities. This high ratio indicates a healthy financial position and ability to meet short-term obligations comfortably.
In 2023, the quick ratio further improved to 5.50, indicating that the company's liquidity position strengthened even more. This implies that Halozyme Therapeutics Inc. is in a solid financial position and has a substantial cushion to cover its immediate liabilities.
Overall, the trend of increasing quick ratios from 2020 to 2021 and then again from 2022 to 2023 suggests that Halozyme Therapeutics Inc. has been effectively managing its short-term liquidity and demonstrating consistent improvement in its ability to meet its current obligations using its liquid assets.
Peer comparison
Dec 31, 2023