Innoviva Inc (INVA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 193,513 | 291,049 | 201,525 | 246,487 | 278,096 |
| Short-term investments | US$ in thousands | 10,600 | 6,400 | 0 | 438,258 | 72,749 |
| Total current liabilities | US$ in thousands | 38,134 | 7,004 | 5,807 | 6,110 | 5,371 |
| Cash ratio | 5.35 | 42.47 | 34.70 | 112.07 | 65.32 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($193,513K
+ $10,600K)
÷ $38,134K
= 5.35
The cash ratio of Innoviva Inc has fluctuated over the past five years, ranging from a high of 80.29 in 2019 to a low of 2.80 in 2022. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In 2023, Innoviva Inc had a cash ratio of 7.58, indicating that the company had $7.58 in cash and cash equivalents for every $1 of current liabilities. This suggests that Innoviva Inc had a relatively strong liquidity position at the end of 2023, with ample cash to meet its short-term obligations.
However, the significant fluctuations in the cash ratio over the years may indicate shifts in the company's liquidity management or changes in its cash position. A high cash ratio can imply that a company is holding excess cash that could be invested more effectively, while a low cash ratio may signal potential liquidity challenges.
Overall, the trend in Innoviva Inc's cash ratio should be monitored to assess its liquidity position and financial health. Additionally, further analysis of the company's cash management practices and cash flow generation capabilities could provide valuable insights into its financial stability and ability to meet its obligations.
Peer comparison
Dec 31, 2023