Moderna Inc (MRNA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.67 | 3.42 | 2.73 | 1.76 | 1.43 |
| Quick ratio | 3.18 | 2.85 | 2.01 | 1.18 | 1.05 |
| Cash ratio | 3.18 | 2.85 | 2.01 | 1.18 | 1.05 |
Based on the provided liquidity ratios for Moderna Inc, we can observe the following trends:
1. Current Ratio:
- The current ratio has shown an increasing trend over the years, from 1.43 in 2020 to 3.67 in 2024.
- This indicates that Moderna Inc's ability to meet its short-term obligations has significantly improved over the years.
- A current ratio above 1 suggests that the company's current assets are sufficient to cover its current liabilities.
2. Quick Ratio:
- Similar to the current ratio, the quick ratio has demonstrated a consistent upward trend from 1.05 in 2020 to 3.18 in 2024.
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- The increasing quick ratio suggests that Moderna Inc has a strong ability to meet its short-term obligations using its most liquid assets.
3. Cash Ratio:
- The cash ratio reflects the proportion of a company's current assets held in cash and cash equivalents.
- The cash ratio for Moderna Inc has also shown a consistent increase from 1.05 in 2020 to 3.18 in 2024.
- This trend indicates that Moderna Inc has been able to increase its cash reserves relative to its current liabilities, enhancing its ability to handle unexpected short-term financial needs.
Overall, the liquidity ratios portray a positive picture of Moderna Inc's financial health, indicating an improvement in its ability to meet short-term obligations and manage liquidity effectively over the years. This increasing liquidity strength suggests that the company has sufficient resources to support its operations and navigate potential financial challenges in the short term.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 29.17 | 15.71 | 63.96 | 200.98 | 2,162.49 |
The cash conversion cycle of Moderna Inc has shown a significant improvement over the years, reflecting the company's efficiency in managing its working capital. In December 2020, the cash conversion cycle was at 2,162.49 days, indicating a prolonged time taken to convert its investments in inventory and receivables into cash.
However, by December 2024, the cash conversion cycle had decreased to 29.17 days, showcasing a remarkable enhancement in Moderna's liquidity position and operational effectiveness. This sharp reduction indicates that the company has streamlined its cash flow processes, resulting in a quicker conversion of inventory and receivables into cash.
Overall, the decreasing trend in Moderna's cash conversion cycle suggests improved working capital management, stronger liquidity position, and potentially enhanced profitability as the company efficiently utilizes its resources to generate cash flow.