Pacira BioSciences, Inc. (PCRX)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	276,774	153,298	104,139	585,578	99,957
Short-term investments	US$ in thousands	207,841	125,283	184,512	70,831	421,705
Total current liabilities	US$ in thousands	309,920	97,383	147,774	521,118	253,328
Cash ratio		1.56	2.86	1.95	1.26	2.06

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($276,774K + $207,841K) ÷ $309,920K
= 1.56

The cash ratio of Pacira BioSciences, Inc. has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was at 2.06, indicating that the company had $2.06 in cash and cash equivalents for every $1 of current liabilities.

However, by December 31, 2021, the cash ratio decreased to 1.26, suggesting a decrease in the company's ability to cover its short-term obligations solely with its available cash resources. The decreasing trend continued into December 31, 2022 when the ratio improved to 1.95, but it was still lower compared to the initial level in 2020.

The cash ratio saw a significant improvement by December 31, 2023, rising to 2.86, indicating a positive change in the company's liquidity position and its ability to meet short-term liabilities. Nonetheless, by December 31, 2024, the ratio fell again to 1.56, signaling a potential decrease in the company's cash reserves relative to its current liabilities.

Overall, the fluctuations in Pacira BioSciences, Inc.'s cash ratio suggest varying levels of liquidity and the need for monitoring the company's ability to meet its short-term financial obligations going forward.