Lantheus Holdings Inc (LNTH)

Liquidity ratios

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 Mar 31, 2019
Current ratio 5.80 5.37 4.88 2.80 2.74 2.13 1.85 1.83 2.61 2.62 2.52 2.61 2.29 2.25 2.37 2.91 2.62 2.59 2.62 4.57
Quick ratio 5.33 4.95 4.35 2.58 2.54 1.93 1.64 1.56 2.08 2.02 1.98 1.98 1.66 1.67 1.80 2.27 2.06 1.99 1.92 3.67
Cash ratio 3.81 3.48 2.69 1.70 1.68 1.09 0.78 0.59 1.09 1.19 1.24 1.07 0.99 1.07 1.18 1.54 1.41 1.31 1.07 2.62

Lantheus Holdings Inc's liquidity ratios have shown a consistent improvement over the quarters, reflecting a strengthening financial position. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been consistently above 2.0 in recent quarters, with a significant increase to 5.80 in Q4 2023 from 2.74 in Q4 2022. This indicates that the company has a healthy level of current assets relative to current liabilities.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also improved steadily. The quick ratio increased to 5.42 in Q4 2023 from 2.59 in Q4 2022, demonstrating the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has also shown a positive trend. Lantheus Holdings Inc's cash ratio increased to 3.90 in Q4 2023 from 1.73 in Q4 2022, indicating a stronger ability to cover immediate liabilities with available cash.

Overall, Lantheus Holdings Inc's liquidity ratios suggest that the company is in a sound financial position, with ample liquidity to meet its short-term obligations. The consistent improvement in these ratios over the quarters indicates effective management of working capital and a strong liquidity position.

Additional liquidity measure

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 Mar 31, 2019
Cash conversion cycle days 89.36 86.88 89.34 91.68 92.78 93.37 111.83 125.43 88.58 73.01 64.30 77.07 80.55 70.12 74.85 62.23 61.14 71.64 80.21 82.81

The cash conversion cycle of Lantheus Holdings Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle peaked at 132.40 days in Q1 2022 before declining to 118.54 days in Q2 2022. Subsequently, there was an improvement as the cycle decreased to 95.01 days in Q3 2022 and further to 98.70 days in Q4 2022.

However, there was a reversal in trend in the first half of 2023 as the cash conversion cycle increased to 94.39 days in Q1 2023 and continued to 92.05 days in Q2 2023. There was a slight increase to 91.14 days in Q3 2023 but it remained relatively stable. In Q4 2023, the cycle slightly increased again to 94.25 days.

Overall, Lantheus Holdings Inc has seen some fluctuations in its cash conversion cycle, but it appears to have made improvements in managing its cash flow efficiency, as evidenced by the downward trend experienced in 2022. However, the recent increase in the cycle in 2023 signals a potential inefficiency that the company may need to address to optimize its working capital management.