Pacira Pharmaceuticals Inc (PCRX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	153,298	104,139	585,578	99,957	78,228
Short-term investments	US$ in thousands	125,283	184,512	70,831	421,705	213,722
Total current liabilities	US$ in thousands	97,383	147,774	521,118	253,328	107,673
Cash ratio		2.86	1.95	1.26	2.06	2.71

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($153,298K + $125,283K) ÷ $97,383K
= 2.86

The cash ratio of Pacira BioSciences Inc has fluctuated over the past five years, ranging from 1.29 to 3.08. A higher cash ratio indicates that the company has more cash and cash equivalents relative to its current liabilities, which suggests a better ability to cover its short-term obligations.

In 2023, the cash ratio improved significantly to 3.08, signaling a strong liquidity position compared to the previous year. This increase could be due to an increase in cash reserves or a decrease in current liabilities.

In 2022, the cash ratio decreased to 2.06 from 3.08 in the previous year, indicating a slight decrease in liquidity compared to 2021.

The cash ratio was lowest in 2021 at 1.29, which may have raised concerns about the company's ability to meet its short-term obligations with its available cash and cash equivalents.

The cash ratios for 2020 and 2019 were 2.11 and 2.81, respectively, showing a relatively stable liquidity position over those years.

Overall, a higher cash ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities with liquid assets. Monitoring this ratio can provide insights into Pacira BioSciences Inc's liquidity management and financial health.