Krystal Biotech Inc (KRYS)

Based on the data provided, the liquidity ratios of Krystal Biotech Inc have shown fluctuations over the reporting periods.

1. Current Ratio: This ratio measures the company's ability to cover its short-term liabilities with its short-term assets. Krystal Biotech's current ratio has varied significantly, ranging from a high of 51.20 in June 2020 to a low of 7.25 in March 2022. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered healthy. However, a very high current ratio could suggest inefficiency in managing current assets.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Krystal Biotech's quick ratio follows a similar trend to the current ratio, with fluctuations from a high of 50.97 in June 2020 to a low of 6.88 in December 2024. A quick ratio above 1 indicates the company can cover its short-term obligations without relying on selling inventory.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing solely on cash and cash equivalents to cover short-term liabilities. Krystal Biotech's cash ratio also experiences fluctuations, ranging from 50.97 in June 2020 to 5.86 in December 2024. A higher cash ratio signifies a stronger ability to meet short-term obligations using only cash.

Overall, the liquidity ratios of Krystal Biotech Inc indicate varying levels of liquidity and ability to meet short-term obligations. It is important for the company to maintain a balance between current assets and liabilities to ensure financial stability and operational continuity.

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Additional liquidity measure

Krystal Biotech Inc's cash conversion cycle, a key metric in assessing a company's efficiency in managing its working capital, has shown fluctuations over the reporting periods. The cash conversion cycle represents the time it takes for a company to convert its resources invested in inventory and accounts receivable into cash from sales.

The data provided indicates that Krystal Biotech Inc has achieved negative cash conversion cycles, implying efficient working capital management and swift conversion of investments into cash. However, fluctuations in the cash conversion cycle have been observed, with some periods showing more days required to convert resources into cash, while others show quicker conversion times.

For instance, the company's cash conversion cycle ranged from a low of -78.72 days on December 31, 2021, to a high of 314.24 days on September 30, 2023. Negative values suggest that the company is efficiently managing its working capital, while positive values, as seen in September 30, 2023, and December 31, 2023, indicate potential challenges in working capital management.

Overall, it is crucial for Krystal Biotech Inc to monitor and optimize its cash conversion cycle consistently to ensure efficient use of its resources and maintain healthy liquidity levels for sustained operations and growth.