Innoviva Inc (INVA)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	304,964	260,630	217,003	178,357	193,513	179,997	173,025	144,049	291,049	300,789	283,580	216,802	201,525	135,115	43,265	282,890	246,487	479,193	413,147	351,981
Short-term investments	US$ in thousands	107,532	—	—	—	0	-422,491	-397,940	-400,894	403,013	282	—	544,437	483,845	507,116	473,677	519,325	438,258	111,745	3,999	31,970
Total current liabilities	US$ in thousands	236,083	223,750	28,206	29,879	38,134	36,183	39,398	38,137	38,775	36,653	125,908	13,211	5,807	3,125	5,371	3,804	6,110	3,898	5,414	2,798
Cash ratio		1.75	1.16	7.69	5.97	5.07	-6.70	-5.71	-6.73	17.90	8.21	2.25	57.62	118.02	205.51	96.25	210.89	112.07	151.60	77.05	137.22

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($304,964K + $107,532K) ÷ $236,083K
= 1.75

The cash ratio of Innoviva Inc has fluctuated over the past few years, indicating varying levels of liquidity.

Starting from March 31, 2020, the cash ratio was 137.22, which was quite high, suggesting a strong ability to cover short-term liabilities with cash on hand. However, this ratio decreased to 77.05 by June 30, 2020, and then increased to 151.60 by September 30, 2020, reflecting some instability in the company's liquidity position.

Throughout the following quarters, the cash ratio continued to fluctuate, reaching its peak at 210.89 on March 31, 2021, before declining again. The ratio dropped significantly to 2.25 by June 30, 2022, indicating a potential liquidity concern, as the company's cash reserves were insufficient to cover its short-term obligations.

Although the ratio improved in the subsequent quarters, it remained relatively low compared to the initial period. By December 31, 2024, the cash ratio stood at 1.75, suggesting that the company's liquidity position had somewhat stabilized but was still below the levels seen in the earlier periods.

Overall, the fluctuating cash ratio of Innoviva Inc indicates the company's changing ability to meet its short-term obligations with its available cash resources, highlighting the importance of closely monitoring liquidity management practices to ensure financial stability.