Krystal Biotech Inc (KRYS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	344,865	373,966	345,786	359,006	358,328	373,241	275,875	140,745	161,900	186,409	218,720	269,303	341,246	286,614	329,527	402,172	268,269	282,369	291,678	180,225
Short-term investments	US$ in thousands	252,635	214,334	213,814	179,294	173,872	188,859	201,625	209,655	217,300	207,991	206,880	165,297	96,854	56,486	38,173	1,228	3,031	4,031	5,522	6,475
Total current liabilities	US$ in thousands	101,995	89,527	71,851	47,589	33,094	27,583	23,898	35,076	28,847	28,032	34,427	60,437	25,736	35,779	18,119	9,144	15,452	7,198	5,831	4,061
Cash ratio		5.86	6.57	7.79	11.31	16.08	20.38	19.98	9.99	13.15	14.07	12.36	7.19	17.02	9.59	20.29	44.12	17.56	39.79	50.97	45.97

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 fluctuated over the years based on the provided data. As of December 31, 2024, the cash ratio stands at 5.86, indicating that the company has $5.86 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively low level of liquidity, which may raise concerns about the company's ability to meet its short-term obligations.

It is important to note that a higher cash ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities with cash on hand. The trend of the cash ratio from December 31, 2022 to December 31, 2024 shows a decline, which could be a cause for caution. Management should closely monitor the company's liquidity position and take appropriate measures to ensure sufficient cash reserves to meet obligations as they fall due.