Myriad Genetics Inc (MYGN)

Myriad Genetics Inc's liquidity ratios show a relatively healthy financial position over the period from December 31, 2020, to December 31, 2024, albeit with some fluctuations.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, decreased from 2.67 in 2020 to 1.82 in 2024. This indicates that the company may have had a slight decrease in its short-term liquidity over this period.

- The quick ratio, also known as the acid-test ratio, dropped from 1.03 in 2020 to 0.62 in 2024. This implies that the company's ability to cover its current liabilities with its most liquid assets decreased significantly during this time frame.

- The cash ratio, which focuses on the company's ability to pay off its current liabilities with only its cash and cash equivalents, followed a similar trend to the quick ratio, declining from 1.03 in 2020 to 0.62 in 2024.

Overall, while the current ratio indicates that the company still maintains a comfortable level of liquidity, the decreasing trend in the quick ratio and cash ratio suggests a potential weakening of Myriad Genetics Inc's ability to meet its short-term obligations with its most liquid assets. It would be important for the company to closely monitor its liquidity position and take any necessary measures to strengthen it in the future.

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Additional liquidity measure

The cash conversion cycle, a measure of how efficiently a company manages its working capital, for Myriad Genetics Inc has fluctuated over the years. In 2020, the company took 55.51 days on average to convert its investments in inventory and other resources back into cash. This decreased significantly to 28.26 days in 2021, indicating improved efficiency in managing its cash flow. However, there was a slight increase in the cash conversion cycle in 2022 to 36.32 days, followed by a slight reduction to 34.00 days in 2023. By the end of 2024, the cycle increased to 39.80 days.

Overall, a decreasing trend in the cash conversion cycle is considered positive as it suggests that Myriad Genetics Inc is becoming more efficient in managing its working capital and converting it into cash. However, the slight increase in 2022 and 2024 may warrant further investigation to understand the factors driving these fluctuations and to ensure optimal management of the company's cash flow.