Pacira Pharmaceuticals Inc (PCRX)

Cash ratio

		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 and cash equivalents	US$ in thousands	153,298	99,119	86,810	35,545	104,139	109,424	122,061	226,751	585,578	134,036	105,774	66,699	99,957	125,244	78,552	54,589	78,228	85,139	59,737	215,036
Short-term investments	US$ in thousands	125,283	136,069	133,956	138,454	184,512	219,301	194,332	225,443	70,831	559,822	540,821	523,364	421,705	406,881	248,240	263,875	213,722	180,505	232,502	197,406
Total current liabilities	US$ in thousands	97,383	93,661	108,912	98,698	147,774	131,526	133,179	305,073	521,118	225,788	228,693	232,084	253,328	86,272	70,583	80,313	107,673	95,838	83,004	58,991
Cash ratio		2.86	2.51	2.03	1.76	1.95	2.50	2.38	1.48	1.26	3.07	2.83	2.54	2.06	6.17	4.63	3.97	2.71	2.77	3.52	6.99

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 experienced fluctuations over the past eight quarters. A higher cash ratio indicates a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In Q4 2023, the cash ratio improved significantly to 3.08, representing a strong liquidity position compared to the previous quarters. This indicates that Pacira BioSciences had $3.08 in cash and cash equivalents for every $1 of current liabilities, demonstrating improved short-term solvency.

The trend over the past year shows fluctuations in the cash ratio, with some quarters showing higher ratios (Q3 2022, Q4 2023) and others showing lower ratios (Q1 2022, Q2 2023). The decrease in the cash ratio in Q1 2022 and Q1 2023 may suggest a temporary strain on liquidity, which improved in subsequent quarters.

Overall, the increasing trend in the cash ratio from Q1 2023 to Q4 2023 indicates that Pacira BioSciences has been managing its liquidity more efficiently, strengthening its ability to meet short-term obligations using cash reserves. However, it is important to monitor future trends to ensure the company maintains adequate liquidity to support its operations and growth strategies.