Pacira Pharmaceuticals Inc (PCRX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 509,994 | 498,334 | 866,048 | 651,623 | 408,557 |
| Total current liabilities | US$ in thousands | 97,383 | 147,774 | 521,118 | 253,328 | 107,673 |
| Current ratio | 5.24 | 3.37 | 1.66 | 2.57 | 3.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $509,994K ÷ $97,383K
= 5.24
The current ratio of Pacira BioSciences Inc has shown fluctuating trends over the past five years. In 2023, the current ratio stands at 5.24, indicating that the company has $5.24 in current assets for every $1 of current liabilities. This represents a significant improvement compared to the previous years, with ratios of 3.37 in 2022, 1.66 in 2021, 2.57 in 2020, and 3.79 in 2019.
The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1.0 is generally considered healthy, as it suggests the company has more than enough current assets to meet its short-term liabilities. Pacira BioSciences' current ratio has been increasing since 2021, indicating a strengthening liquidity position.
The sharp increase in the current ratio from 2022 to 2023 suggests that Pacira BioSciences has significantly improved its liquidity and ability to meet its short-term obligations. This improvement could be attributed to better management of current assets and liabilities, increased cash reserves, or reduced short-term debt.
Overall, the increasing trend in Pacira BioSciences Inc's current ratio indicates improved short-term liquidity and financial stability, which may enhance the company's ability to withstand economic uncertainties and pursue growth opportunities.
Peer comparison
Dec 31, 2023