Neurocrine Biosciences Inc (NBIX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	439,300	350,000	187,700	160,800	126,575
Total current liabilities	US$ in thousands	654,800	537,700	245,800	186,500	565,300
Quick ratio		2.25	2.49	3.66	5.16	1.41

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($251,100K + $780,500K + $439,300K) ÷ $654,800K
= 2.25

The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. Neurocrine Biosciences, Inc.'s quick ratio has fluctuated over the past five years, indicating changes in the company's liquidity position.

In 2023, the quick ratio decreased to 2.40 from 2.64 in 2022. This decline suggests that Neurocrine Biosciences may have experienced a reduction in its ability to cover its short-term liabilities with its quick assets compared to the previous year.

Comparing the current quick ratio to the ratios in 2021, 2020, and 2019 reveals a downward trend in liquidity since the quick ratio was at its peak in 2020 at 5.30 and then declined to 3.83 in 2021 and further decreased to 2.40 in 2023. This downward trend over the years indicates a potential deterioration in the company's liquidity position and ability to meet its short-term obligations using quick assets.

Overall, while the quick ratio for Neurocrine Biosciences has varied over the years, the recent decrease in 2023 suggests a possible weakening of the company's short-term liquidity position compared to prior years. Further analysis of the company's current assets and liabilities is recommended to provide a more comprehensive understanding of its financial health.