Krystal Biotech Inc (KRYS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	344,865	358,328	161,900	341,246	268,269
Short-term investments	US$ in thousands	252,635	173,872	217,300	96,854	3,031
Total current liabilities	US$ in thousands	101,995	33,094	28,847	25,736	15,452
Cash ratio		5.86	16.08	13.15	17.02	17.56

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($344,865K + $252,635K) ÷ $101,995K
= 5.86

The cash ratio of Krystal Biotech Inc has shown some fluctuations over the years. In December 2020, the cash ratio was relatively high at 17.56, indicating that the company had a significant amount of cash on hand to cover its current liabilities. However, by December 2021, the cash ratio slightly decreased to 17.02. This could suggest a slight decrease in the company's ability to cover its short-term obligations with its available cash.

In December 2022, the cash ratio decreased further to 13.15, indicating a decrease in the company's liquidity position compared to the previous year. This suggests that Krystal Biotech Inc may have been utilizing more of its cash reserves or experiencing challenges in generating sufficient cash flow to cover its short-term obligations.

By December 2023, the cash ratio increased to 16.08, showing some improvement in the company's liquidity position. This increase may indicate that Krystal Biotech Inc has taken steps to manage its cash more effectively or has experienced an improvement in its cash flow generation.

However, in December 2024, the cash ratio dropped significantly to 5.86, which could raise concerns about the company's ability to cover its current liabilities with its available cash. This sharp decrease may warrant further investigation into Krystal Biotech Inc's cash management practices and overall financial health.