Lantheus Holdings Inc (LNTH)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 5.52 | 5.80 | 2.74 | 2.61 | 2.29 |
| Quick ratio | 3.80 | 3.81 | 1.68 | 1.09 | 0.99 |
| Cash ratio | 3.80 | 3.81 | 1.68 | 1.09 | 0.99 |
Lantheus Holdings Inc has demonstrated consistent improvement in its liquidity ratios over the years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has increased steadily from 2.29 in 2020 to 5.52 in 2024. This indicates that the company has significantly increased its liquidity and is in a stronger position to cover its short-term liabilities.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement over the same period, rising from 0.99 in 2020 to 3.80 in 2024. This suggests that Lantheus Holdings Inc has a good ability to meet its short-term obligations using only its most liquid assets.
The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) relative to current liabilities, has also improved consistently from 0.99 in 2020 to 3.80 in 2024. This indicates that the company has a strong ability to cover its short-term obligations based purely on its available cash resources.
In conclusion, Lantheus Holdings Inc's liquidity ratios have shown positive trends over the years, reflecting an increasingly healthy financial position and enhanced ability to manage short-term financial obligations effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 45.51 | 39.82 | 36.64 | 53.98 | 65.02 |
The cash conversion cycle of Lantheus Holdings Inc has been showing a positive trend over the years, reflecting increasing efficiency in managing its working capital.
In December 2020, the company's cash conversion cycle was 65.02 days, indicating that it took around 65 days for Lantheus to convert its investments in inventory and accounts receivable back into cash.
By December 2024, the cash conversion cycle had improved to 45.51 days, suggesting that the company had become more efficient in converting its resources into cash.
The decreasing trend in the cash conversion cycle from 2020 to 2024 may indicate that Lantheus has been effectively managing its inventory and receivables, possibly through improved inventory turnover and faster collection of receivables.
This trend suggests that Lantheus Holdings Inc has been successful in optimizing its working capital management, which is crucial for maintaining liquidity and sustaining operations effectively.