Neurocrine Biosciences Inc (NBIX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	251,100	262,900	340,800	187,100	112,300
Short-term investments	US$ in thousands	780,500	726,400	370,500	613,900	558,245
Total current liabilities	US$ in thousands	654,800	537,700	245,800	186,500	565,300
Cash ratio		1.58	1.84	2.89	4.29	1.19

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($251,100K + $780,500K) ÷ $654,800K
= 1.58

The cash ratio of Neurocrine Biosciences, Inc. has shown fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, the cash ratio decreased to 1.72 from 1.99 in 2022, which may suggest a slight decline in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. However, the ratio still remains above 1, indicating the company has sufficient liquid assets to meet its short-term obligations.

Comparing the current ratio to previous years, there has been a notable decline from 4.46 in 2020 to 1.72 in 2023. This significant decrease over time may warrant further investigation into the company's liquidity position and its ability to manage short-term financial commitments effectively.

Overall, while the cash ratio of Neurocrine Biosciences, Inc. has decreased in recent years, the company still maintains a reasonable level of liquidity to meet its short-term obligations. It would be important for stakeholders to monitor this trend and assess the company's ability to maintain a healthy cash position in the future.