Innoviva Inc (INVA)
Liquidity ratios
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 | |
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Current ratio | 2.35 | 1.79 | 12.70 | 10.42 | 9.03 | 8.43 | 8.21 | 7.77 | 11.44 | 10.15 | 3.18 | 24.06 | 54.02 | 75.82 | 27.60 | 98.04 | 55.98 | 146.75 | 92.39 | 166.87 |
Quick 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 |
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 |
The liquidity ratios of Innoviva Inc indicate the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown fluctuation over the years. It started at a very high level in March 2020 but gradually decreased, indicating potential issues in managing short-term obligations. The ratio reached a low point in June 2022, signaling a potential liquidity challenge. However, there was a slight improvement in liquidity from that point onwards, although the ratio still remains relatively low.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also experienced fluctuations over the years. Similarly to the current ratio, it peaked in March 2021, indicating a strong ability to meet short-term obligations. However, it dropped significantly in June 2022, reaching a negative value which may imply difficulties in meeting immediate obligations without relying on inventory. The ratio improved slightly in the following periods but remained at lower levels compared to previous years.
The cash ratio, which is the most conservative measure of liquidity as it only includes cash and cash equivalents, also showed variations over time. Similar to the quick ratio, it dipped into negative territory in March 2023 and June 2023, suggesting challenges in meeting immediate obligations from available cash resources alone. While there was a recovery in the ratio in the subsequent periods, it still remained relatively low compared to earlier years.
Overall, the liquidity ratios of Innoviva Inc suggest some challenges in managing short-term obligations, particularly in the mid to late 2022 period. It would be important for the company to closely monitor its liquidity position and take necessary actions to improve its ability to meet short-term obligations effectively.
Additional liquidity measure
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 | ||
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Cash conversion cycle | days | 218.01 | 172.54 | 184.29 | 216.19 | 282.50 | 373.22 | 516.25 | 653.49 | 976.89 | 1,816.46 | 131.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Innoviva Inc has shown a significant fluctuation over the periods provided. The company started with a cash conversion cycle of 0 days in March 2020 and maintained this level until September 2021. However, in the subsequent quarters, the cash conversion cycle began to increase significantly, reaching its peak at 1,816.46 days in September 2022.
This sharp increase could indicate potential problems with the company's cash management, inventory turnover, or accounts receivable collection efficiency during that period. The company may have faced challenges in converting its investments in raw materials and inventory into sales and then into cash within a reasonable timeframe.
Subsequently, the cash conversion cycle decreased gradually, indicating potential improvements in the company's working capital management. As of December 2024, the cash conversion cycle stood at 218.01 days, still higher than the initial periods but showing a positive trend towards a shorter cycle.
Overall, Innoviva Inc's cash conversion cycle has demonstrated volatility and fluctuations, with periods of both inefficiency and improvement in managing its cash, inventory, and receivables. Monitoring and analyzing these trends can provide valuable insights into the company's operational efficiency and financial performance.