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.
Peer comparison
Dec 31, 2023