Krystal Biotech Inc (KRYS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	742,045	587,909	383,779	442,267	275,058
Total current liabilities	US$ in thousands	101,995	33,094	28,847	25,736	15,452
Current ratio		7.28	17.76	13.30	17.18	17.80

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $742,045K ÷ $101,995K
= 7.28

Based on the provided data, the current ratio for Krystal Biotech Inc has exhibited fluctuations over the past five years, ranging from a high of 17.80 on December 31, 2020, to a low of 7.28 on December 31, 2024. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position and suggests that the company is better equipped to meet its short-term obligations.

Krystal Biotech's current ratio peaked in 2020 at 17.80, indicating a significant buffer of current assets to cover its short-term liabilities, which is a positive sign for creditors and investors. However, there was a notable decline in the current ratio to 7.28 by the end of 2024, which may raise concerns about the company's ability to meet its short-term obligations with current assets alone.

It is essential for stakeholders to closely monitor Krystal Biotech's current ratio trends to assess its liquidity position and financial health. A declining current ratio may signal potential liquidity challenges, whereas an improving ratio could indicate better short-term financial stability.