Neurocrine Biosciences Inc (NBIX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 233,000 | 251,100 | 262,900 | 340,800 | 187,100 |
| Short-term investments | US$ in thousands | 843,100 | 780,500 | 726,400 | 370,500 | 613,900 |
| Total current liabilities | US$ in thousands | 507,700 | 654,800 | 537,700 | 245,800 | 186,500 |
| Cash ratio | 2.12 | 1.58 | 1.84 | 2.89 | 4.29 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($233,000K
+ $843,100K)
÷ $507,700K
= 2.12
The cash ratio of Neurocrine Biosciences Inc has shown a declining trend over the past five years. Starting at a healthy level of 4.29 in December 2020, the ratio has decreased to 2.12 by December 2024. This indicates a reduction in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. While the ratio is still above 1, suggesting that the company has sufficient cash to cover its current liabilities, the downward trend may raise concerns about its liquidity position. Neurocrine Biosciences Inc may need to monitor its cash management strategies to ensure it maintains a healthy cash position relative to its short-term obligations.
Peer comparison
Dec 31, 2024