Krystal Biotech Inc (KRYS)

Krystal Biotech Inc's liquidity ratios have shown consistently high levels over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 17.18 to 58.88, indicating a strong ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also ranged from 17.02 to 58.22 over the same period. This suggests that the company has a significant cushion of liquid assets to cover its short-term liabilities without relying on inventory.

The cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, has been consistently high, ranging from 13.15 to 58.22. This indicates that Krystal Biotech Inc has a substantial amount of easily accessible cash to meet its short-term obligations.

Overall, based on these liquidity ratios, Krystal Biotech Inc appears to have a strong financial position with ample liquidity to meet its short-term financial obligations, which is a positive indicator for the company's financial health and operational efficiency.

---

Additional liquidity measure

The cash conversion cycle of Krystal Biotech Inc has shown variability over the past five years. In 2023, the company's cash conversion cycle was 285.75 days, indicating that it took approximately 285.75 days to convert its investments in inventory and accounts receivable into cash flows from sales. This represents a significant increase compared to the previous year.

In 2022, the company experienced a negative cash conversion cycle of -18.69 days, implying that it was able to generate cash from its operations before paying its suppliers and creditors. This was a favorable position for the company.

However, in 2021, 2020, and 2019, Krystal Biotech Inc had negative cash conversion cycles as well, indicating efficient management of its working capital. The company was able to convert its investments into cash quickly during these years.

Overall, the positive cash conversion cycle in 2023 may suggest a potential need for the company to optimize its working capital management or address any inefficiencies in its operations to improve cash flow in the future. It is important for Krystal Biotech Inc to monitor its cash conversion cycle closely to ensure effective utilization of resources and sustained financial performance.