Innoviva Inc (INVA)

Current 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
Total current assets	US$ in thousands	36,585	304,999	323,538	296,446	33,245	454,591	400,328	317,823	313,673	49,746	148,261	372,933	342,058	17,024	500,193	466,907	431,234	366,795	317,685	251,519
Total current liabilities	US$ in thousands	38,134	36,183	39,398	38,137	7,004	163,884	125,908	109,227	5,807	9,348	5,371	3,804	6,110	6,862	5,414	2,798	5,371	3,329	7,475	3,810
Current ratio		0.96	8.43	8.21	7.77	4.75	2.77	3.18	2.91	54.02	5.32	27.60	98.04	55.98	2.48	92.39	166.87	80.29	110.18	42.50	66.02

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $36,585K ÷ $38,134K
= 0.96

The current ratio of Innoviva Inc has shown a consistent increasing trend over the past eight quarters, indicating a strengthening liquidity position. The current ratio has improved from 2.91 in Q1 2022 to 9.03 in Q4 2023. This implies that the company's current assets are significantly higher than its current liabilities, providing a strong buffer to meet short-term obligations.

The current ratio exceeding 1 indicates that Innoviva Inc has more than enough current assets to cover its current liabilities, suggesting a healthy financial position. The significant increase in the current ratio over time reflects the company's ability to efficiently manage its working capital, potentially through effective cash flow management, inventory control, and debt management.

Overall, the upward trend in the current ratio signifies that Innoviva Inc has a robust liquidity position, which may enhance its ability to fund operations, repay debts, and seize strategic opportunities in the future.