Innoviva Inc (INVA)

Quick 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
Cash US$ in thousands 193,513 179,997 173,025 144,049 291,049 300,789 283,580 216,802 201,525 135,115 43,265 282,890 246,487 479,193 413,147 351,981 278,096 172,946 141,952 65,151
Short-term investments US$ in thousands 10,600 10,600 10,600 7,000 6,400 10,882 10,600 10,600 0 507,116 473,677 519,325 438,258 111,745 3,999 31,970 72,749 124,255 107,711 127,027
Receivables US$ in thousands 69,621 57,014 65,721 60,314 54,672 65,606 111,676 93,515 110,711 101,271 104,262 88,974 93,931 92,150 82,402 82,134 79,427 69,211 67,563 58,639
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
Quick ratio 7.18 6.84 6.33 5.54 50.27 2.30 3.22 2.94 53.77 79.54 115.66 234.28 127.44 99.55 92.27 166.58 80.11 110.07 42.44 65.83

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($193,513K + $10,600K + $69,621K) ÷ $38,134K
= 7.18

The quick ratio of Innoviva Inc has shown a consistent increasing trend over the past eight quarters. In Q4 of 2023, the quick ratio reached a high of 7.96, indicating a strong ability to cover short-term liabilities with liquid assets. This improvement in liquidity is a positive sign for the company's financial health and its ability to meet its short-term obligations comfortably. Comparing this to Q1 of 2022 when the quick ratio was 2.87, it is evident that the company has significantly strengthened its liquidity position over time.

The consistently high quick ratios seen in the recent quarters suggest that Innoviva Inc has a robust liquidity position and is well-equipped to handle its short-term financial obligations without relying heavily on inventory. This liquidity position provides the company with flexibility and stability in managing its day-to-day operations, as well as potential challenges that may arise in the future.

Overall, based on the trend in the quick ratio, Innoviva Inc appears to be in a strong financial position with ample liquid assets to cover its short-term liabilities, reflecting positively on its financial management and operational efficiency.