Myriad Genetics Inc (MYGN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 132,100 | 56,900 | 257,400 | 163,700 | 93,200 |
| Short-term investments | US$ in thousands | 8,800 | 112,800 | 141,400 | 54,100 | 43,700 |
| Total current liabilities | US$ in thousands | 155,900 | 137,200 | 204,300 | 147,000 | 117,800 |
| Cash ratio | 0.90 | 1.24 | 1.95 | 1.48 | 1.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($132,100K
+ $8,800K)
÷ $155,900K
= 0.90
The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio is generally viewed favorably as it indicates a stronger liquidity position.
In the case of Myriad Genetics, Inc., the cash ratio has varied over the past five years. As of December 31, 2023, the company's cash ratio of 1.14 suggests that for every dollar of current liabilities, the company has $1.14 in cash and cash equivalents available to meet those obligations.
Comparing this to previous years, the cash ratio was relatively stable between 2019 and 2022, ranging from 1.11 to 1.52. However, there was a significant decrease in the cash ratio in 2023 compared to 2022. This could indicate a potential liquidity concern or a change in the company's cash management strategy.
Overall, while Myriad Genetics, Inc. has maintained a cash ratio above 1 in recent years, indicating a relatively healthy liquidity position, investors and analysts may want to monitor any further changes in the cash ratio to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023