Krystal Biotech Inc (KRYS)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	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	187,514	194,806	186,587
Short-term investments	US$ in thousands	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	6,186	8,394	8,913
Receivables	US$ in thousands	46,467	42,040	9,316	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	3,327	3,726	3,940
Quick ratio		12.29	17.35	20.72	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	58.22	54.54	49.62

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($359,006K + $179,294K + $46,467K) ÷ $47,589K
= 12.29

The quick ratio of Krystal Biotech Inc has fluctuated over the past quarters, indicating varying levels of liquidity. In general, a higher quick ratio suggests a better ability to cover short-term obligations and indicates a stronger financial position. Looking at the trend, the quick ratio has experienced significant fluctuations, ranging from a low of 7.19 to a high of 58.22.

The quick ratio was relatively stable and high in the first three quarters of 2023, showing values above 17. This suggests that the company had a significant amount of liquid assets to cover its current liabilities during this period. However, in the last quarter of 2023, the quick ratio dropped to 9.99, indicating a potential decrease in liquidity compared to the previous quarters.

The quick ratio then increased in the first quarter of 2024 to 12.29, but it is still below the levels seen in the first three quarters of 2023. This improvement suggests that the company has increased its ability to cover short-term obligations, although it has not fully returned to the higher levels of liquidity seen earlier.

Overall, while the quick ratio of Krystal Biotech Inc has shown some volatility, it is important to monitor this ratio over time to assess the company's liquidity position and its ability to meet short-term financial commitments effectively.