Lantheus Holdings Inc (LNTH)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio 5.52 1.65 4.68 4.84 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
Quick ratio 3.80 1.10 2.88 3.03 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
Cash ratio 3.80 1.10 2.88 3.03 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

The liquidity ratios of Lantheus Holdings Inc show fluctuations over the quarters.

1. Current Ratio: The company's current ratio has generally been above 2, indicating healthy short-term liquidity levels. However, there was a notable decrease in the current ratio from March 31, 2022, to December 31, 2022, before rebounding and reaching a peak of 5.80 on December 31, 2023. The ratio dropped significantly on September 30, 2024, reflecting potential liquidity concerns.

2. Quick Ratio: Lantheus' quick ratio follows a similar trend to the current ratio but generally exhibits lower values as it excludes inventory from current assets. The quick ratio dropped sharply to 0.59 on March 31, 2022, presenting a liquidity challenge. The ratio has shown fluctuations but has generally trended upward since then, reaching a high of 3.80 on December 31, 2024.

3. Cash Ratio: The cash ratio mirrors the quick ratio as it is an even stricter measure of liquidity, focusing solely on cash and cash equivalents. Similar to the quick ratio, the cash ratio dropped to 0.59 on March 31, 2022, suggesting a cash shortage. The ratio has since improved, reaching 3.80 on December 31, 2024.

Overall, Lantheus Holdings Inc has experienced fluctuations in its liquidity ratios, with periods of strength followed by potential challenges. It is important for the company to closely monitor these ratios to ensure it maintains adequate liquidity levels to meet its short-term obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 46.35 49.98 51.41 52.89 39.82 36.88 35.63 30.94 36.64 38.60 41.79 47.02 53.98 55.98 54.04 55.56 65.02 72.30 70.93 61.53

The cash conversion cycle of Lantheus Holdings Inc has been fluctuating over the past few years. It measures the time it takes for the company to convert its investments in inventory back into cash. From March 2020 to December 2024, the cash conversion cycle has shown a generally decreasing trend, indicating an improvement in the efficiency of the company's cash management.

The cycle decreased from 61.53 days in March 2020 to 46.35 days by December 2024. This suggests that Lantheus Holdings has been able to streamline its operations, manage its inventory more effectively, and collect receivables more efficiently. A shorter cash conversion cycle is typically favorable as it signifies that the company is able to generate cash faster from its operational activities.

Overall, the decreasing trend in Lantheus Holdings Inc's cash conversion cycle reflects positively on the company's liquidity and working capital management, indicating an improvement in its ability to generate cash flow from its core operations. This trend suggests that the company has been enhancing its operational efficiency and effectiveness in managing its working capital over the years.