Neurocrine Biosciences Inc (NBIX)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.40 | 4.37 | 4.19 | 2.52 | 2.45 | 2.39 | 2.57 | 3.83 | 2.70 | 2.49 | 3.57 | 4.02 | 3.96 | 4.45 | 5.21 | 5.71 | 5.45 | 1.89 | 2.00 | 6.90 |
| Quick ratio | 3.09 | 3.98 | 3.78 | 2.35 | 2.25 | 2.20 | 2.35 | 3.45 | 2.49 | 2.28 | 3.26 | 3.67 | 3.66 | 4.13 | 4.91 | 5.39 | 5.16 | 1.81 | 1.92 | 6.59 |
| Cash ratio | 2.12 | 2.86 | 2.61 | 1.70 | 1.58 | 1.58 | 1.68 | 2.39 | 1.84 | 1.65 | 2.27 | 2.62 | 2.89 | 3.39 | 4.16 | 4.60 | 4.29 | 1.55 | 1.65 | 5.50 |
Neurocrine Biosciences Inc's liquidity ratios show a strong financial position with consistent improvement over the years. The current ratio has gradually decreased from 6.90 in March 2020 to 3.40 in December 2024, indicating a decline in short-term liquidity but remaining above the industry average of 2. A similar trend is observed in the quick ratio, which has decreased from 6.59 to 3.09 over the same period, showing a slight decline in the company's ability to cover its short-term obligations with its most liquid assets.
The cash ratio, measuring the company's ability to cover its current liabilities with cash and cash equivalents, has also decreased from 5.50 in March 2020 to 2.12 in December 2024. Despite this decline, Neurocrine Biosciences Inc still maintains a healthy cash position, indicating the company's ability to meet its short-term obligations.
Overall, Neurocrine Biosciences Inc maintains solid liquidity ratios, providing a sufficient cushion to cover its short-term obligations. The declining trend in the ratios suggests a more efficient management of current assets and liabilities to optimize working capital and enhance overall liquidity.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 96.56 | 95.28 | 96.88 | 100.11 | 100.21 | 99.15 | 99.34 | 109.72 | 107.00 | 103.72 | 100.38 | 98.17 | 80.93 | 75.26 | 79.17 | 78.59 | 81.19 | 75.14 | 76.81 | 85.20 |
The cash conversion cycle of Neurocrine Biosciences Inc has shown some fluctuations over the period under review. It is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 75.14 days to a high of 109.72 days. Generally, a shorter cash conversion cycle is preferred as it indicates that the company is efficient in managing its working capital.
There was an upward trend in the cash conversion cycle from March 31, 2022, peaking at 109.72 days, but it then decreased gradually to around 96.56 days by December 31, 2024. This could suggest potential improvements in inventory management or collection of receivables during the latter part of the period.
However, it is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal utilization of resources and maintain healthy liquidity levels.