Neurocrine Biosciences Inc (NBIX)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.47 | 7.08 | 7.44 | 8.79 |
| Quick ratio | 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 | 1.41 | 6.79 | 7.11 | 8.28 |
| Cash ratio | 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 | 1.19 | 5.79 | 6.16 | 7.28 |
Neurocrine Biosciences, Inc. has maintained healthy liquidity ratios over the quarters, indicating its ability to meet short-term obligations and financial flexibility. The current ratio has shown some fluctuations but remained above 2 in all quarters, with Q1 2023 reporting the highest ratio of 3.83. This suggests the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also been consistent and above 2 across all quarters. This implies that Neurocrine Biosciences can comfortably meet its short-term obligations without relying on the sale of inventory.
The cash ratio, which is the most stringent measure of liquidity, has also been relatively stable and comfortably above 1 in all quarters. This indicates that the company holds sufficient liquid assets to cover its current liabilities, with Q1 2023 showing the highest cash ratio of 2.69.
Overall, the liquidity ratios of Neurocrine Biosciences, Inc. suggest a sound financial position with ample resources to cover short-term obligations and invest in growth opportunities.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 78.34 | 76.56 | 74.14 | 68.84 |
The cash conversion cycle of Neurocrine Biosciences, Inc. fluctuated over the past eight quarters, indicating varying efficiencies in managing its cash flows from operations. The cycle measures the time taken from purchasing inventory to receiving cash from sales, reflecting the company's ability to efficiently convert its investments in inventory and receivables into cash.
In Q1 2022, Neurocrine Biosciences had a relatively high cash conversion cycle of 741.21 days, indicating a longer time to convert investments into cash. This figure improved in subsequent quarters, reaching a low of 355.72 days in Q3 2023, suggesting enhanced operational efficiency and possibly stronger sales and collection processes.
However, the company experienced an increase in its cash conversion cycle in Q4 2023 to 437.10 days. This could be attributed to various factors such as increased inventory levels, longer payment terms with suppliers, or slower collection of receivables. Overall, Neurocrine Biosciences needs to focus on optimizing its inventory management, accounts receivable collection, and payment processes to streamline its cash conversion cycle and enhance liquidity and profitability.