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.