Myriad Genetics Inc (MYGN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 102,400 | 132,100 | 56,900 | 258,400 | 117,000 |
| Short-term investments | US$ in thousands | 0 | 8,800 | 58,000 | 81,400 | 33,700 |
| Total current liabilities | US$ in thousands | 164,100 | 155,900 | 137,200 | 204,300 | 145,900 |
| Cash ratio | 0.62 | 0.90 | 0.84 | 1.66 | 1.03 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($102,400K
+ $0K)
÷ $164,100K
= 0.62
The cash ratio, calculated by dividing a company's cash and cash equivalents by its current liabilities, provides insight into a company's ability to cover its short-term liabilities with its readily available cash.
For Myriad Genetics Inc, the cash ratio has shown fluctuations over the past five years. Starting at 1.03 on December 31, 2020, the ratio increased to 1.66 on December 31, 2021, indicating an improvement in the company's ability to meet short-term obligations with its cash reserves. However, there was a decline in the ratio to 0.84 on December 31, 2022, suggesting a potential decrease in the company's liquidity position.
Subsequently, the ratio increased slightly to 0.90 on December 31, 2023, but decreased significantly to 0.62 on December 31, 2024. This downward trend may raise concerns about the company's ability to cover its current liabilities solely with its cash holdings.
Overall, fluctuations in the cash ratio indicate varying levels of liquidity for Myriad Genetics Inc over the five-year period, highlighting the importance of closely monitoring the company's cash position and managing its short-term obligations effectively.
Peer comparison
Dec 31, 2024