Krystal Biotech Inc (KRYS)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	104,700	42,040	—	—	—
Total current liabilities	US$ in thousands	101,995	33,094	28,847	25,736	15,452
Quick ratio		6.88	17.35	13.15	17.02	17.56

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($344,865K + $252,635K + $104,700K) ÷ $101,995K
= 6.88

Based on the provided data, the quick ratio of Krystal Biotech Inc has shown fluctuations over the five-year period. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

As of December 31, 2020, the quick ratio was 17.56, indicating a strong ability to cover its current liabilities with cash and near-cash assets. However, there was a slight decrease in the quick ratio to 17.02 by December 31, 2021.

The quick ratio experienced a more significant decline to 13.15 by the end of December 31, 2022, which may raise concerns about the company's short-term liquidity position. It rebounded to 17.35 by December 31, 2023, suggesting an improvement in the ability to meet short-term obligations.

By the end of December 31, 2024, the quick ratio decreased to 6.88, indicating a substantial reduction in the company's ability to cover current liabilities with its quick assets. This significant decline may raise questions about the company's liquidity and ability to meet short-term obligations.

Overall, the trend in Krystal Biotech Inc's quick ratio shows fluctuations over the five-year period, with periods of strength and weakness in its short-term liquidity position. It is essential for stakeholders to continue monitoring the company's liquidity position to ensure its financial health.