Pacira BioSciences, Inc. (PCRX)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.40 | 2.25 | 6.82 | 5.81 | 5.24 | 4.78 | 3.94 | 3.81 | 3.37 | 4.06 | 3.95 | 2.19 | 1.66 | 3.64 | 3.47 | 3.10 | 2.57 | 7.63 | 6.46 | 5.37 |
| Quick ratio | 1.56 | 1.48 | 4.36 | 3.49 | 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 |
| Cash ratio | 1.56 | 1.48 | 4.36 | 3.49 | 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 |
Overall, the liquidity ratios of Pacira BioSciences, Inc. show a relatively strong financial position over the analyzed periods. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown fluctuations but generally remained above 2. A current ratio above 2 is often considered healthy, indicating the company has enough current assets to meet its short-term obligations.
The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, also demonstrates a favorable trend, staying above 1 consistently. This suggests that the company can meet its short-term liabilities without relying on selling inventory, which is a positive sign of financial strength.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, mirrors the trends of the quick ratio. The company has maintained a healthy cash ratio above 1, indicating that it has a sufficient amount of cash to cover immediate liabilities without relying on other current assets.
In summary, based on the liquidity ratios analysis, Pacira BioSciences, Inc. appears to have maintained a solid liquidity position during the periods analyzed, with the ability to meet its short-term obligations comfortably. However, it is worth noting that quarterly fluctuations in these ratios should be monitored to ensure continued financial stability.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 229.71 | 184.59 | 170.00 | 166.86 | 191.41 | 177.13 | 160.27 | 159.90 | 175.94 | 200.31 | 228.95 | 260.98 | 256.47 | 179.66 | 180.62 | 198.25 | 201.12 | 219.58 | 229.11 | 199.54 |
The cash conversion cycle for Pacira BioSciences, Inc. has shown fluctuations over the years. It decreased from 199.54 days as of March 31, 2020, to 159.90 days as of March 31, 2023, indicating an improvement in the company's ability to convert its investments in inventory and accounts receivable into cash.
However, the cash conversion cycle increased to 191.41 days by December 31, 2023, and then escalated further to 229.71 days by December 31, 2024. This upward trend suggests a lengthening of the time it takes for Pacira BioSciences to convert its resources into cash, which could signal potential inefficiencies in managing working capital.
It is essential for Pacira BioSciences to closely monitor and address the factors contributing to the prolonged cash conversion cycle to ensure optimal cash flow management and operational efficiency in the future.