Pacira Pharmaceuticals Inc (PCRX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 3.79 | 3.95 | 4.75 | 8.62 |
| Quick ratio | 3.94 | 3.55 | 2.94 | 2.71 | 2.62 | 3.21 | 3.06 | 1.78 | 1.44 | 3.29 | 3.13 | 2.77 | 2.27 | 6.70 | 5.25 | 4.45 | 3.15 | 3.22 | 4.02 | 7.67 |
| 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 |
Pacira BioSciences Inc has shown a strong trend in its liquidity ratios over the past eight quarters. The current ratio has consistently been above 3, indicating that the company has more than enough current assets to cover its current liabilities. The ratio has been steadily increasing, reaching 5.24 in Q4 2023, which is a positive sign for the company's short-term financial health.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also been well above 1 in all quarters, with a range of 2.72 to 4.17. This indicates that Pacira BioSciences Inc can meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also been consistently above 1, ranging from 1.92 to 3.08. This implies that the company has ample cash on hand to cover its current liabilities without needing to rely on other current assets.
Overall, Pacira BioSciences Inc's liquidity ratios paint a positive picture of the company's ability to meet its short-term financial obligations. The improving trend in these ratios suggests that the company's liquidity position has been strengthening over the past quarters, providing a solid foundation for its financial stability and flexibility.
Additional liquidity measure
| 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 conversion cycle | days | 235.55 | 203.78 | 176.62 | 185.68 | 205.33 | 226.31 | 251.71 | 281.85 | 293.95 | 195.63 | 197.93 | 214.31 | 213.74 | 217.91 | 236.99 | 179.22 | 196.82 | 202.68 | 190.64 | 175.62 |
The cash conversion cycle of Pacira BioSciences Inc has exhibited fluctuations over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle increased to 232.31 days, indicating a lengthening of the time taken to generate cash from its operational activities. This was a notable increase from the previous quarter Q3 2023, where the cycle was 199.99 days.
However, compared to earlier quarters in 2023, the cash conversion cycle in Q4 demonstrated an improvement from Q2 (172.20 days) and Q1 (181.05 days), suggesting more efficient management of working capital in converting resources to cash.
Looking back at 2022, there appears to have been a declining trend in the cash conversion cycle from Q1 (281.52 days) to Q2 (251.26 days), Q3 (225.71 days), and Q4 (201.92 days). This suggests that the company was able to streamline its operations and enhance its efficiency in cash flow generation over the course of the year.
Overall, it is essential for Pacira BioSciences Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital utilization and liquidity management in the future.